Real and Money Wages, Output and Inflation in the Semi-Industrialized World

Bibliographic Data

ID9723212
AuthorsLance Taylor (0000-0003-2782-8492, corresponding author)
Year1990
Volume57
Issue227
Pages329
Publication date1990-08-01
Open AccessNo
TypeARTICLE
VenueEconomica (JOURNAL)
Journal identifiersISSN: 0013-0427 • E-ISSN: 1468-0335
PublisherJSTOR (PUBLISHER)
DOI10.2307/2554938
OpenAlexW1967385042
LanguageEN
Citations received4
References cited12

Recent structuralist ideas about real and money wage changes are reviewed, addressing six questions: (1) In an economy closed to trade, do real wage increases cause output to rise or fall? (2) If output is at an upper bound, what are the roles of real wage and wealth movements in macro adjustment? (3) Taking effective demand into account, do money wage cuts stimulate employment? (4) In an open economy, does money wage reduction or devaluation make output rise? (5) At an output bound, what are the respective roles of wage reduction and monetary restraint in slowing inflation? (6) If inflation is driven by cost with output below capacity, how do wage dynamics affect stabilization programmes based on de-indexation and price freezes? Institutional factors suggest that wage-cutting may be a counterproductive answer to all these policy questions in semi-industrialized economies

Devaluation · Economics · Efficiency wage · Exchange rate · Indexation · Inflation (cosmology) · Labour economics · Monetary economics · Monetary policy · Open economy · Real wages · Wage · Economic theories and models · Economic Theory and Policy

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