High inflation and real wages /

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...

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Bibliographic Details
Main Author: Braumann, Benedikt
Format: Book
Language:English
Published: Washington, D.C. : International Monetary Fund, 2001
Series:IMF working paper ; no. WP/01/50
Subjects:
Online Access:http://www.imf.org/external/pubs/ft/wp/2001/wp0150.pdf

MARC

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100 1 |9 1057  |a Braumann, Benedikt 
245 1 0 |a High inflation and real wages /  |c prepared by Benedikt Braumann. 
260 |a Washington, D.C. :  |b International Monetary Fund,  |c 2001 
300 |a 23 p. 
490 0 |a IMF working paper ;  |v no. WP/01/50 
504 |a Bibliografía: p. 22-23. 
505 0 |a 1. Introduction -- 2. Intuition -- 3. The model -- 4. The effects of inflation -- 5. Real wages and poverty -- 6. Conclusions. 
520 0 |a 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. 
541 |c Donación Banco Central de la República Argentina 
650 4 |a INFLACION SALARIAL  |9 1059 
650 4 |a POBREZA  |9 387 
650 4 |9 421  |a MODELO DE HECKSCHER-OHLIN 
856 4 |u http://www.imf.org/external/pubs/ft/wp/2001/wp0150.pdf 
942 |2 ddc  |c DOCU  |j F 332.415 B 20810 
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