Inflazione in un economia indicizzata: alcune generalizzazioni (Inflation in an price-indexed economy: some generalizations)

Authors

  • P.C. PADOAN
  • M.L. PETIT

DOI:

https://doi.org/10.13133/2037-3651/11844

Keywords:

Modigliani, Padoa-Schioppa, real wages, employment, indexation, price stability, inflation

Abstract

In a recent paper F. Modigliani and T. Padoa-Schioppa analyzed the characteristics of an economy, such as Italy’s, in which wages are 100% protected against inflation through the mechanism of wage indexation to prices. These characteristics are summarized in 11 propositions. In this paper the authors address issues related to three of these propositions. More precisely, they show that, outside of the very particular hypothesis adopted by Modigliani and Padoa-Schioppa regarding the range of price adjustment, a) no level of production compatible with price stationarity exists in the context of their model; b) the inflationary process does not depend solely on the cost of production being higher than that compatible with price stationarity.

 

JEL: E31, E24

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Published

2014-03-25

Issue

Vol. 31 No. 122 (1978)

Section

Articoli

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