Markup, Indexation and Inflation: A Bargaining Approach

Elsevier Science
Publication Type:
Journal article
Faria, J. 2003 'Markup, Indexation and Inflation: A Bargaining Approach', Economic Modelling, vol. 18, no. 2, pp. 229-236.
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The paper introduces a wage indexation rule into a bargaining framework, and shows that increasing indexation and decreasing competition among firms affects the price level and nominal wage positively. The macroeconomic implication is that there is room for active macroeconomic policies to stabilise output and employment, avoiding or minimising the effects of indexation.
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