High inflation and real wages /
Braumann, Benedikt
High inflation and real wages / prepared by Benedikt Braumann. - Washington, D.C. : International Monetary Fund, 2001 - 23 p. - IMF working paper ; no. WP/01/50 .
Bibliografía: p. 22-23.
1. Introduction -- 2. Intuition -- 3. The model -- 4. The effects of inflation -- 5. Real wages and poverty -- 6. Conclusions.
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.
INFLACION SALARIAL
POBREZA
MODELO DE HECKSCHER-OHLIN
332.415
High inflation and real wages / prepared by Benedikt Braumann. - Washington, D.C. : International Monetary Fund, 2001 - 23 p. - IMF working paper ; no. WP/01/50 .
Bibliografía: p. 22-23.
1. Introduction -- 2. Intuition -- 3. The model -- 4. The effects of inflation -- 5. Real wages and poverty -- 6. Conclusions.
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.
INFLACION SALARIAL
POBREZA
MODELO DE HECKSCHER-OHLIN
332.415