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.
- Issue Date:
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.
Please use this identifier to cite or link to this item: