Traded Goods, Competitiveness and Aggregate Fluctuations in the United Kingdom

George Alogoskoufis

Economic Journal, 1990, vol. 100, issue 399, 141-63

Abstract: This paper presents an investigation of the relations between wage adjustment, competitiveness, and aggregate fluctuations in the United Kingdom. It uses a real business cycle model based on the distinction between internationally traded and nontraded goods. The traded goods sector is assumed a price taker, and the focus is on the supply side. The model can account quite well for fluctuations in competitiveness, output, wages, and the terms of trade. The results suggest output flexibility and wage-price rigidity, a combination that produces interesting patterns of macroeconomic adjustment, which parallel the predictions of more traditional Keynesian models. Copyright 1990 by Royal Economic Society.

Date: 1990
References: Add references at CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://links.jstor.org/sici?sici=0013-0133%2819900 ... CO%3B2-%23&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
Working Paper: Traded Goods, Competitiveness and Aggregate Fluctuations in the United Kingdom (1988)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecj:econjl:v:100:y:1990:i:399:p:141-63

Ordering information: This journal article can be ordered from
http://www.blackwell ... al.asp?ref=0013-0133

Access Statistics for this article

Economic Journal is currently edited by Martin Cripps, Steve Machin, Woulter den Haan, Andrea Galeotti, Rachel Griffith and Frederic Vermeulen

More articles in Economic Journal from Royal Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing () and Christopher F. Baum ().