IDEAS home Printed from https://ideas.repec.org/a/oup/cambje/v24y2000i6p643-70.html
   My bibliography  Save this article

Inflation and Employment: Is There a Third Way?

Author

Listed:
  • Wilkinson, Frank

Abstract

High post-war inflation precipitated a counter reformation in theory from Keynesianism and established the conventional wisdom that a level of unemployment existed at which prices stabilised. The policy application of this notion failed to improve economic performance and, although inflation fell, mass unemployment and poverty returned. The explanation for this from within the new orthodoxy was that demand and supply conditions in the labour market had changed and unemployability explained joblessness. A study of the trend in import prices suggests, however, that the fall in inflation can be more readily explained by falls in import prices and other changes, which redistributed resources from the periphery to the core. This suggests that monetary control works indirectly on inflation by lowering economic activity and by reducing the bargaining power of the relatively weak. The enormous economic and social costs of this suggest that institutional ways of controlling prices offer major benefits. Copyright 2000 by Oxford University Press.

Suggested Citation

  • Wilkinson, Frank, 2000. "Inflation and Employment: Is There a Third Way?," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 24(6), pages 643-670, November.
  • Handle: RePEc:oup:cambje:v:24:y:2000:i:6:p:643-70
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Matias Vernengo & Nathan Perry, 2018. "Exchange Rate Depreciation, Wage Resistance and Inflation in Argentina (1882–2009)," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 47(1), pages 125-144, February.
    2. Jill Rubery & Brendan Burchell & Simon Deakin & Suzanne J Konzelmann, 2022. "A Tribute to Frank Wilkinson," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 46(3), pages 429-445.
    3. Claudio Sardoni, 2011. "Incomes policies: Two approaches," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 8(1), pages 147-163.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:cambje:v:24:y:2000:i:6:p:643-70. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/cje .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.