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Incomes Policies, Expectations and the NAIRU

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  • Wolfgang Pollan

    (WIFO)

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    Abstract

    Since the 19960s, several countries have adopted income policies in various forms to control inflation that had been interpreted as the result of a distributional struggle between business and labour unions. Recent writings on the NAIRU, however, ignore past policy interventions in the wage and price setting system, in the formation and propagation of inflation expectations, in particular. Some of the problems inherent in such an approach are illustrated in this paper by applying the standard tools of NAIRU analysis to the Austrian economy, an economy that has been subject to a variety of policy measures.

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    File URL: http://www.wifo.ac.at/wwa/pubid/31740
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    Bibliographic Info

    Paper provided by WIFO in its series WIFO Working Papers with number 314.

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    Length: 26 pages
    Date of creation: 31 Mar 2008
    Date of revision:
    Handle: RePEc:wfo:wpaper:y:2008:i:314

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    Keywords: NAIRU; incomes policies; expectations; Lucas critique;

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