Title High inflation and real wages / Benedikt Braumann

Published [Washington, D.C.] : International Monetary Fund, Western Hemisphere Dept., ©2001

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Description 1 online resource (23 pages) : illustrations Series IMF working paper ; WP/01/50 IMF working paper ; WP/01/50. Summary Empirical data show that real wages fall sharply during periods of high inflation. This paper suggests a simple general equilibrium explanation, without relying on nominal rigidities. It presents an intertemporal two-sector model with a cash-in-advance constraint. In this setting, inflation reduces real wages through (1) a decline of the capital stock, and (2) a shift in relative prices. The two effects are additive and make the decline in real wages exceed the decline in per-capita GDP. This mechanism may contribute to rising poverty during periods of high inflation Bibliography Includes bibliographical references (pages 22-23) Notes Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 MiAaHDL English digitized 2010 HathiTrust Digital Library committed to preserve pda MiAaHDL Print version record Subject Inflation (Finance) -- Econometric models Wages -- Effect of inflation on -- Econometric models Prices -- Effect of inflation on -- Econometric models Poverty -- Effect of inflation on -- Econometric models Gross domestic product -- Econometric models Prices -- Econometric models Poverty -- Econometric models Prices -- Econometric models Poverty -- Econometric models Gross domestic product -- Econometric models Inflation (Finance) -- Econometric models Wages -- Effect of inflation on -- Econometric models Form Electronic book Author International Monetary Fund. Western Hemisphere Department. ISBN 1451894058 9781451894059 1281602108 9781281602107 1462336914 9781462336913 1452723036 9781452723037 9786613782793 6613782793

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