Exchange rate pass-through inflation and wage differentials in late-industrializing economies: the Mexican case

Teresa S. Lópes (), Quadalupe Mantéy () and Luis Quintana Romero

Brazilian Journal of Political Economy, 2012, vol. 32, issue 4, 634-655

Abstract: This paper investigates exchange rate pass-through inflation, and the wage bargaining process, in a developing economy in which firms’ market power is largely dependent on technical progress embodied in imported intermediates and capital goods. It develops a heterodox model of income distribution, based on theoretical contributions from Latin American structuralists, labor market segmentationists and post-Keynesian writers, and it presents supportive empirical evidence from the Mexican economy. JEL Classification: E11; E12; E31; J31; O11.

Keywords: income distribution; inflation; developing economies (search for similar items in EconPapers)
Date: 2012
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