Year: 1992
Author: Jarchow, Hans-Joachim
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 112 (1992), Iss. 1 : pp. 1–23
Abstract
The underlying model, whose supply side is characterized by wage indexation and the incorporation of an imported intermediate good (raw material), leads to the following results: A rise in the price of imported raw materials (e.g. oil) causes a longrun increase of domestic prices, a decrease of production, and an indefinite reaction of the exchange rate. A rise in the price of imported final goods, however, causes a decrease of domestic prices, an increase of production, and a definite appreciation of the exchange rate with a short-run possibility of an undershooting. In both cases, the long-run effects on employment are equivocal.
Journal Article Details
Publisher Name: Global Science Press
Language: Multiple languages
DOI: https://doi.org/10.3790/schm.112.1.1
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 112 (1992), Iss. 1 : pp. 1–23
Published online: 1992-01
AMS Subject Headings: Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 23