{
  "title": "The Macroeconomic Consequences of Wage Indexation Revisited",
  "publication": "IMF Working Papers, February 1, 1998",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/30/the-macroeconomic-consequences-of-wage-indexation-revisited-2506",
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  "summary": "Since the mid-1970s, there has been considerable research on the macroeconomic consequences of wage indexation. Nonetheless, until recently, this research had not explicitly explored the implications of contracts that index wages to lagged inflation, the usual type of wage indexation observed in pra",
  "sections": [
    {
      "heading": "Scope and research focus",
      "content": "- Author: Esteban Jadresic\n- Publication date: February 1, 1998\n- Series: Working Paper No. 1998/015\n- Issue: 015\n- Volume: 1998\n- Pages: 54\n- DOI: https://doi.org/10.5089/9781451843231.001\n- ISBN: 9781451843231\n- ISSN: 1018-5941\n- Core focus: consequences of wage indexation to lagged inflation (the usual type observed in practice)"
    },
    {
      "heading": "Key substantive findings",
      "content": "- The paper examines the implications of wage indexation to lagged inflation on:\n  - aggregate wage formation\n  - the cost of disinflation under money-based stabilization\n  - the cost of disinflation under exchange-rate-based stabilization\n  - the variability of output under alternative shocks and policy regimes\n  - the choice of exchange rate regime\n  - the level and variability of inflation\n- Emphasis on contracts that index wages to lagged inflation, a feature not explicitly explored in earlier research prior to recent work by the author."
    },
    {
      "heading": "Policy-relevant conclusions and considerations",
      "content": "- Disinflation costs and dynamics depend on the type of stabilization policy:\n  - money-based stabilization implications are a principal focus\n  - exchange-rate-based stabilization implications are a principal focus\n- Wage indexation to lagged inflation influences:\n  - aggregate wage-setting behavior\n  - macroeconomic variability (output and inflation)\n  - considerations for selecting exchange rate regimes in open-economy contexts"
    },
    {
      "heading": "Subjects and keywords covered",
      "content": "- Subjects: Inflation, Labor, Prices, Real wages, Wage adjustments, Wage indexation, Wages\n- Keywords: exchange rate, indexation, indexation clause, indexation literature, indexation period, indexation rule, Inflation, inflation variability, macroeconomics, open economy, Real wages, Wage adjustments, wage contract, Wage indexation, wage indexation need, Wages, WP\n\nSource: IMF Working Paper — Esteban Jadresic, \"The Macroeconomic Consequences of Wage Indexation Revisited\", Working Paper No. 1998/015, February 1, 1998 (DOI: https://doi.org/10.5089/9781451843231.001).\n\n---\n\n Content in this bundle\n\n- he Microeconomic Consequences of Wage Indexation Revisited - WP/98/15\n  - he Microeconomic Consequences of Wage Indexation Revisited - WP/98/15 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - he Microeconomic Consequences of Wage Indexation Revisited - WP/98/15 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/the-macroeconomic-consequences-of-wage-indexation-revisited-2506"
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    "Authors: Esteban Jadresic",
    "Published: February 1, 1998",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451843231.001",
    "Author: Esteban Jadresic",
    "Publication date: February 1, 1998",
    "Series: Working Paper No. 1998/015",
    "Issue: 015",
    "Volume: 1998",
    "Pages: 54",
    "DOI: https://doi.org/10.5089/9781451843231.001",
    "ISBN: 9781451843231",
    "ISSN: 1018-5941",
    "Core focus: consequences of wage indexation to lagged inflation (the usual type observed in practice)",
    "The paper examines the implications of wage indexation to lagged inflation on:",
    "Emphasis on contracts that index wages to lagged inflation, a feature not explicitly explored in earlier research prior to recent work by the author.",
    "Disinflation costs and dynamics depend on the type of stabilization policy:",
    "Wage indexation to lagged inflation influences:",
    "Subjects: Inflation, Labor, Prices, Real wages, Wage adjustments, Wage indexation, Wages",
    "Keywords: exchange rate, indexation, indexation clause, indexation literature, indexation period, indexation rule, Inflation, inflation variability, macroeconomics, open economy, Real wages, Wage adjustments, wage contract, Wage indexation, wage indexation need, Wages, WP",
    "**he Microeconomic Consequences of Wage Indexation Revisited - WP/98/15**"
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