Price Flexibility and Employment
نویسندگان
چکیده
منابع مشابه
Price Flexibility , Credit Availability , and Economic Fluctuations :
The importance of disturbances in financial markets for real economic activity and the positive association between price level and output movements typically are explained by appeal to a combination of nominal aggregate demand shocks (particularly money-supply shocks) and rigid prices. We argue that this view is inconsistent with evidence for short-run responsiveness of prices and gold flows t...
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The price system, the adjustment of prices to changes in market conditions, is the primary mechanism by which markets function and by which the three most basic questions get answered: what to produce, how much to produce and for whom to produce. To the behaviour of price and price system, therefore, have fundamental implications for many key issues in microeconomics and industrial organization...
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A fixed exchange rate limits the ability of the real exchange rate to adjust to shocks, and tends to raise the volatility of real GDP. But adjustment may be enhanced if internal prices are more flexible under a fixed exchange rate. This paper develops a model in which price setters incur a cost to retain the option of ex-post price flexibility. The benefit of flexibility is increasing in the va...
متن کاملWage Flexibility and Employment Fluctuations: Evidence from the Housing Sector
Wage Flexibility and Employment Fluctuations: Evidence from the Housing Sector* Many economists suspect that downward nominal wage rigidities in ongoing labor contracts are an important source of employment fluctuations over the business cycle but there is little direct empirical evidence on this conjecture. This paper compares three occupations in the housing sector with very different wage se...
متن کاملMonopolistic Price Flexibility and Social Welfare: the Linear Case
We explore the case for monopolistic price flexibility in a linear setting. With different marginal costs, by changing the production mix price differentiation can improve welfare and also aggregate consumer surplus even if total output does not increase (as in the linear case). This depends on the variability of cost and demand parameters, and on their correlation. We also show that the welfar...
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ژورنال
عنوان ژورنال: The Canadian Journal of Economics and Political Science
سال: 1946
ISSN: 0315-4890
DOI: 10.2307/137268