Wage Inflation, Electoral Uncertainty and the Exchange Rate Regime: Theory and UK Evidence
Ben Lockwood () and
Apostolis Philippopoulos ()
Economic Journal, 1992, vol. 102, issue 415, 1370-94
The authors extend the "rational partisan" model of inflation to allow for the effects of unemployment persistence on the dynamics of inflation. The authors combine this model with the "exchange-rate-regime" model of inflation, and examine the experience of the United Kingdom. Outside the fixed exchange rate regime of Bretton Woods, persistently high inflation can be attributed to the failure of political parties to precommit to price stability, in the light of unemployment persistence. Election times are associated with higher inflation, with the exception of the Thatcher period. There is no evidence that the Labour party is in general more tolerant to inflation than the Conservatives. Copyright 1992 by Royal Economic Society.
References: Add references at CitEc
Citations View citations in EconPapers (13) Track citations by RSS feed
Downloads: (external link)
http://links.jstor.org/sici?sici=0013-0133%2819921 ... 0.CO%3B2-B&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
Working Paper: Wage Inflation, Electoral Uncertainty and the Exchange Rate Regime: Theory and UK Evidence (1992)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ecj:econjl:v:102:y:1992:i:415:p:1370-94
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 ().