Stagnant productivity to hold back global wages growth

2016 ◽  
Keyword(s):  
Productivity Growth ◽  
Central Banks ◽  
Status Quo ◽  
Living Standards ◽  
Price Inflation ◽  
Content Type ◽  
Core Inflation ◽  
Inflation Targets ◽  
Global Growth

Subject Trends in wages growth. Significance Weak global growth and intense competition have held back investment, constraining productivity growth, pay and living standards. There is a long-standing debate over whether stalled productivity is temporary or structural. However, even if productivity accelerates, wages might not follow suit. Low wage and price inflation makes high debt levels less sustainable, leading some experts to advise countries at risk to raise pay growth. In Japan, these attempts have failed, while for a country such as Italy this would be against EU rules. Impacts Global growth over 2017-18 will be critical in helping or hindering central banks to restore the pre-crisis status quo. Rigidity in annual pay rises will make it hard to change an economy's long-term core inflation. This happened during the hyperinflation of the 1970s-80s; now it will make it hard to get inflation back to target. Wages are not set by central banks, making it tougher to enforce their inflation targets.

scholarly journals The role and significance of planning in the determination of house prices in Australia: Recent policy debates

2021 ◽  
pp. 0308518X2198894
Author(s):  
Peter Phibbs ◽  
Nicole Gurran
Keyword(s):  
Land Use ◽  
Housing Market ◽  
Land Use Planning ◽  
House Prices ◽  
Housing Prices ◽  
House Price ◽  
Evidence Base ◽  
Urban Housing ◽  
Price Inflation ◽  
Depth Analysis

On the world stage, Australian cities have been punching above their weight in global indexes of housing prices, sparking heated debates about the causes of and remedies for, sustained house price inflation. This paper examines the evidence base underpinning such debates, and the policy claims made by key commentators and stakeholders. With reference to the wider context of Australia’s housing market over a 20 year period, as well as an in depth analysis of a research paper by Australia’s central Reserve Bank, we show how economic theories commonly position land use planning as a primary driver of new supply constraints but overlook other explanations for housing market behavior. In doing so, we offer an alternative understanding of urban housing markets and land use planning interventions as a basis for more effective policy intervention in Australian and other world cities.

The Role of War in Modern Inflation

1977 ◽  
Vol 37 (1) ◽  
pp. 13-19 ◽  
Author(s):  
Earl J. Hamilton
Keyword(s):  
World War Ii ◽  
Social Welfare ◽  
Early Modern ◽  
World War ◽  
Price Inflation ◽  
Modern Times ◽  
Paper Currency ◽  
Deficit Financing ◽  
Early Modern Times

Wars in early modern times, although frequent, generated little price inflation because of their limited demands on real resources. The invention of paper currency and the resort to deficit financing to pay for wars changed that situation. In recent centuries wars have been the principal causes of inflation, although since World War II programs of social welfare unmatched by offsetting taxation have also fueled inflationary flames.

scholarly journals Extracting Inflation from Stock Returns to Test Purchasing Power Parity

2005 ◽  
Vol 95 (1) ◽  
pp. 255-276 ◽  
Author(s):  
Bhagwan Chowdhry ◽  
Richard Roll ◽  
Yihong Xia
Keyword(s):  
Stock Returns ◽  
Purchasing Power Parity ◽  
Strong Support ◽  
Commodity Price ◽  
Relative Price ◽  
Purchasing Power ◽  
Power Parity ◽  
Price Inflation ◽  
Short Run ◽  
Relative Ppp

Relative purchasing power parity (PPP) holds for pure price inflations, which affect prices of all goods and services by the same proportion, while leaving relative prices unchanged. Pure price inflations also affect nominal returns of all traded financial assets by exactly the same amount. Recognizing that relative PPP may not hold for the official inflation data constructed from commodity price indices because of relative price changes and other frictions that cause prices to be “sticky,” we provide a novel method for extracting a proxy for realized pure price inflation from stock returns. We find strong support for relative PPP in the short run using the extracted inflation measures.

scholarly journals Public Debt and Changing Inflation Targets

2016 ◽  
Vol 8 (4) ◽  
pp. 142-176 ◽  
Author(s):  
Michael U. Krause ◽  
Stéphane Moyen
Keyword(s):  
Central Bank ◽  
Public Debt ◽  
Pronounced Effect ◽  
New Keynesian ◽  
Moderate Increase ◽  
New Keynesian Model ◽  
Inflation Target ◽  
Keynesian Model ◽  
Maturity Structure ◽  
Inflation Targets

What are the effects of a higher central bank inflation target on the burden of real public debt? Several recent proposals have suggested that even a moderate increase in the inflation target can have a pronounced effect on real public debt. We consider this question in a New Keynesian model with a maturity structure of public debt and an imperfectly observed inflation target. We find that moderate changes in the inflation target only have significant effects on real public debt if they are essentially permanent. Moreover, the additional benefits of not communicating a change in the inflation target are minor. (JEL E12, E31, E52, H63)

Asset Price Inflation in the 1980s: A Flow of Funds Perspective

1993 ◽  
Author(s):  
Monica Hargraves ◽  
Garry J. Schinasi ◽  
Steven R. Weisbrod
Keyword(s):  
Asset Price ◽  
Price Inflation ◽  
Flow Of Funds ◽  
Asset Price Inflation

RISK VARIABLE ON CONTRACTOR’S TENDER FIGURE IN MALAYSIA

2016 ◽  
Vol 78 (5-2) ◽  
Author(s):  
Sabihah Saaidin ◽  
Intan Rohani Endut ◽  
Siti Akmar Abu Samah ◽  
Ahmad Ruslan Mohd Ridzuan ◽  
Nur Nabihah Abd Razak
Keyword(s):  
Construction Industry ◽  
Questionnaire Survey ◽  
Construction Materials ◽  
Project Performance ◽  
Risk Exposure ◽  
Financial Capability ◽  
Price Inflation ◽  
Risk Variable ◽  
Significant Factors

Construction industry like other industries is subject to risks due to the unique and complexity of the construction industries. It shows the risk exposure at highest level during the tendering process. The objective of this paper is to evaluate risk variable on contractor’s tender figure in Malaysia. To achieve the objective, questionnaire survey was conducted on G7 contractor in Malaysia. A total of 120 usable postal questionnaires was received. The findings have shown quality expectation, price inflation of construction materials, the risk involved in the project and financial capability of the client are most significant factors to be considered by contractors when estimating the pricing risks. The study recommended that competent contractors should be allowed to tender project as to see the risk variable inherent during tendering process that will affect project performance.    

Sign in / Sign up

Export Citation Format

Share Document