EconPapers    
Economics at your fingertips  
 

Expected Inflation and Output Variability in Flexible Price and Contracting Models

Giancarlo Marini and Pasquale Scaramozzino

Oxford Economic Papers, 1992, vol. 44, issue 2, 232-41

Abstract: This paper proves that the variability of output over the business cycle can be exacerbated due to the expected inflation effect even in new classical models with fully flexible prices. The authors also consider a variant of Fischer's rational expectations model with overlapping wage contracts. Their analytical results support the view that higher wage flexibility may increase the asymptotic variance of real output. Copyright 1992 by Royal Economic Society.

Date: 1992
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://links.jstor.org/sici?sici=0030-7653%2819920 ... 0.CO%3B2-P&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
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:oup:oxecpp:v:44:y:1992:i:2:p:232-41

Ordering information: This journal article can be ordered from
http://www.oup.co.uk/journals

Access Statistics for this article

Oxford Economic Papers is currently edited by A. Banerjee and James Forder

More articles in Oxford Economic Papers from Oxford University Press Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().

 
Page updated 2021-01-26
Handle: RePEc:oup:oxecpp:v:44:y:1992:i:2:p:232-41