TY  - BOOK
AU  - Braumann,Benedikt
TI  - High Inflation and Real Wages
T2  - IMF Working Papers; Working Paper
SN  - 1451846975 :
SN  - 1018-5941
PY  - 2001///
CY  - Washington, D.C.
PB  - International Monetary Fund
KW  - Cash-In-Advance
KW  - imf
KW  - Financial Markets and the Macroeconomy
KW  - Heckscher-Ohlin
KW  - High Inflation
KW  - Relative Price
KW  - Relative Prices
KW  - Argentina
KW  - Brazil
KW  - Mexico
KW  - Peru
KW  - Suriname
N2  - Empirical data show that real wages fall sharply during periods of high inflation. This paper suggests a simple general equilibrium explanation, without relying on nominal rigidities. It presents an intertemporal two-sector model with a cash-in-advance constraint. In this setting, inflation reduces real wages through (1) a decline of the capital stock, and (2) a shift in relative prices. The two effects are additive and make the decline in real wages exceed the decline in per-capita GDP. This mechanism may contribute to rising poverty during periods of high inflation
UR  - http://elibrary.imf.org/view/IMF001/03091-9781451846973/03091-9781451846973/03091-9781451846973.xml
UR  - http://www.imfbookstore.org/IMFORG/9781451846973
ER  -