Is the wage rate the real anchor of the inflation targeting monetary policy framework?
Fuente:
Redalyc
Enregistré dans:
| Auteur principal: | |
|---|---|
| Format: | Artículo científico |
| Langue: | en |
| Publié: |
Universidad Nacional Autónoma de México
2017
|
| Sujets: | |
| Accès en ligne: | |
| Tags: |
Ajouter un tag
Pas de tags, Soyez le premier à ajouter un tag!
|
| _version_ | 1876477467415281664 |
|---|---|
| author | Ignacio Perrotini Hernández |
| author_facet | Ignacio Perrotini Hernández |
| contents | Is the wage rate the real anchor of the inflation targeting monetary policy framework? Ignacio Perrotini Hernández Juan Alberto Vázquez Muñóz Economía y Finanzas Wages monetary policy unit labour costs income distribution inflation targeting N umerous central banks ( cb s) focus on controlling the nominal interest rate ( i ) to sway the price level and meet the inflation target ( π o ) nowadays (Taylor, 1993; Bernanke et al. , 1999; Woodford, 2003). The i is taken to be the anchor for a low and stable rate of inflation in an open economy model. Yet, some analysts, orthodox and heterodox alike, have challenged this belief arguing that cb s turn to the exchange rate ( e ) channel and adopt it as a second policy tool with the aim of meeting π o (Svensson, 1999; Hüfner, 2004). The purpose of this paper is to show that the veritable anchor of inflation is neither i nor e , but the wage rate and the unit labour costs ( ulc ). We conduct econo - metric analyses based on data from a set of inflation targeting countries. The main empirical findings support our hypothesis regarding the higher importance of wages and the ulc vis-à-vis i and e in the determination of the cpi . 2017 artículo científico 0185-1667 https://www.redalyc.org/articulo.oa?id=60155350002 en http://www.redalyc.org/revista.oa?id=601 Investigación Económica application/pdf Universidad Nacional Autónoma de México Investigación Económica (México) Num.302 Vol.LXXVI |
| format | Artículo científico |
| id | redalyc_60155350002 |
| institution | Redalyc |
| language | en |
| publishDate | 2017 |
| publisher | Universidad Nacional Autónoma de México |
| spellingShingle | Is the wage rate the real anchor of the inflation targeting monetary policy framework? Ignacio Perrotini Hernández Economía y Finanzas Wages monetary policy unit labour costs income distribution inflation targeting Is the wage rate the real anchor of the inflation targeting monetary policy framework? Ignacio Perrotini Hernández Juan Alberto Vázquez Muñóz Economía y Finanzas Wages monetary policy unit labour costs income distribution inflation targeting N umerous central banks ( cb s) focus on controlling the nominal interest rate ( i ) to sway the price level and meet the inflation target ( π o ) nowadays (Taylor, 1993; Bernanke et al. , 1999; Woodford, 2003). The i is taken to be the anchor for a low and stable rate of inflation in an open economy model. Yet, some analysts, orthodox and heterodox alike, have challenged this belief arguing that cb s turn to the exchange rate ( e ) channel and adopt it as a second policy tool with the aim of meeting π o (Svensson, 1999; Hüfner, 2004). The purpose of this paper is to show that the veritable anchor of inflation is neither i nor e , but the wage rate and the unit labour costs ( ulc ). We conduct econo - metric analyses based on data from a set of inflation targeting countries. The main empirical findings support our hypothesis regarding the higher importance of wages and the ulc vis-à-vis i and e in the determination of the cpi . 2017 artículo científico 0185-1667 https://www.redalyc.org/articulo.oa?id=60155350002 en http://www.redalyc.org/revista.oa?id=601 Investigación Económica application/pdf Universidad Nacional Autónoma de México Investigación Económica (México) Num.302 Vol.LXXVI |
| title | Is the wage rate the real anchor of the inflation targeting monetary policy framework? |
| topic | Economía y Finanzas Wages monetary policy unit labour costs income distribution inflation targeting |
| url | https://www.redalyc.org/articulo.oa?id=60155350002 |