Wage Bargaining Coordination and the Phillips Curve in Italy
Abstract
Was there a textbook-like Phillips curve in post-WWII Italy? We estimate a consensus model of the relationship between inflation and the level of economic activity over 1949-1998, finding no evidence of a significant and positive feedback from output to prices. We also estimate similar models for the UK and the US. We discuss the role of wage coordination and indexation mechanisms in generating what amounts to a significant departure of Italian data from what holds true for the US and UK. Likely, the rigid indexation mechanism that aimed at protecting wages from inflation ended up contributing to the persistent inflation bias that Italy experienced almost until its entry into EMU.Download Info
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Paper provided by University of Brescia, Department of Economics in its series Working Papers with number 0901.Length:
Date of creation: 2009
Date of revision:
Handle: RePEc:ubs:wpaper:0901
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Keywords:This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-05-23 (All new papers)
- NEP-CBA-2009-05-23 (Central Banking)
- NEP-MAC-2009-05-23 (Macroeconomics)
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Alessandro Fedele & Paolo M. Panteghini & Sergio Vergalli, 2010.
"Optimal Investment and Financial Strategies under Tax Rate Uncertainty,"
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"The Phillips Curve and the Italian Lira, 1861-1998,"
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2008-05, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
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"Do Social Enterprises Finance Their Investments Differently from For-profit Firms? The Case of Social Residential Services in Italy,"
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"Markets and Contracts,"
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"Retrospective Capital Gains Taxation in the Real World,"
CESifo Working Paper Series
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