Inflation and Macroeconomics in the US during the Golden Age

This paper reviews interpretations of the moderate inflation observed in the US during the 1950s and early 1960s. In this period, moderate and persistent inflation disconcerted economists and challenged policymakers. The opposition between demand-pull and cost-push views stimulated different interpretations, as sectorial demand-shift inflation theory and the modified Phillips curve. As policy targeted growth and employment, incomes policy was applied to contain inflation. The pa-per provides an overview of explanations to the moderate inflationary process in light of the historical events of the Golden Age of capitalism.

Wage distribution in the period of economic growth with income distribution: The case of Brazil

This paper analyses in detail the distribution of Brazilian wages in the period of economic growth with income distribution. Brazil presents a high structural heterogeneity that generates high wage inequality, and it is shown that wage differences within occupational categories are greater than wage differences between occupational categories. Higher GDP growth followed by an incomes policy that raised low wages reduced wage differences especially within occupational categories rather than wage differences between occupational categories.

The Rise of Segmented Neo-Corporatism in South America: Wage Coordination in Argentina and Uruguay (2005-2015)

Argentina and Uruguay are the only democracies in Latin America (among few in the world) that have developed sustained, state-oriented national and sectoral wage bargaining between employers and unions after 2005. The article defines “segmented neo-corporatism” as a new form of centralized incomes policy in the region that applies to a substantial portion (i.e., registered workers), though not to all the labor force. Drawing on neo-corporatist theory, I explain, first, why only Argentina and Uruguay could consolidate a centralized, national wage policy in the context of the Latin American Left-Turn. Second, I test empirically the degree of state-oriented wage coordination. The study argues that monetary policy deterrence and higher levels of bargaining centralization largely explain the greater capacity of Uruguayan neo-corporatism to govern wage-setting compared with its Argentine counterpart. Finally, the article puts segmented neo-corporatism in comparative perspective in the developing world and draws some theoretical implications.

Cross-sectoral coordination and regulation of wage determination in northern Europe: Divergent responses to multiple external pressures

We examine changes in collective wage regulation in five northern European countries since 2000, with a focus on coordination across sectors, articulation between levels and determination of wage floors. Earlier change in the functioning of wage bargaining arrangements in Germany placed pressure on other northern countries. In Finland, employers recently instigated a shift from tripartite incomes policy to manufacturing-led pattern bargaining, with increased scope for decentralized negotiations. This made Finnish arrangements more similar to their Nordic counterparts, which have been marked by modest adaptations. Divergence continues in wage floor regulation. Increased statutory generalization of collectively agreed minimum wages has moved Germany and Norway closer to Finland, while Denmark and Sweden still rely solely on collective bargaining. The multi-faceted employer and state approaches to wage regulation are not consistent with recent claims of a neoliberal transformation across the northern coordinated economies.

Macroeconomic Balance

One of the biggest challenges from petroleum wealth comes from a subsequent loss of international competitiveness. Resource wealth can easily inflate the local economy, making it more difficult for other economic sectors to maintain international competitiveness. This chapter introduces the challenge of Dutch Disease and its diverse remedies. The latter part of the chapter describes how Norway has always struggled with the need to maintain international competitiveness, and has developed a highly organized economy (corporatism) as a result. Norwegian incomes policy, responsible budgeting policies, devaluations, and a restricted pace of extraction have all been used, at various times, to limit the threat of a real exchange rate appreciation.