Commenti a un recente studio di Modigliani e Padoa-Schioppa (Comments on a recent study by Modigliani and Padoa-Schioppa)

Abstract

In a recent work, F. Modigliani and T. Padoa-Schioppa presented a theoretical framework in support of the widely diffused thesis among economic commentators regarding the existence of an inverse relationship between real wages and employment. Their central thesis is that in an economy where wages are indexed 100%, for each value of the real wage only one level of real national product exists that is consistent with price stability. One of their specific propositions is that a reduction of social contributions covered by an equal tightening of indirect taxation does not produce any effect on the equilibrium level of employment, nor on the rate of inflation outside of equilibrium. It is argued that this proposition is valid for both a closed economy as well as an open one. In the present article, the author shows instead that, under the model M. PS, this proposition in general is not valid for either a closed economy or for an open economy.

JEL: E24, E31, J31