Traded Goods, Competitiveness and Aggregate Fluctuations in the United Kingdom
This paper presents an investigation of the relations between wage adjustment, competitiveness, and aggregate fluctuations in the United Kingdom. It uses a real business cycle model based on the distinction between internationally traded and nontraded goods. The traded goods sector is assumed a price taker, and the focus is on the supply side. The model can account quite well for fluctuations in competitiveness, output, wages, and the terms of trade. The results suggest output flexibility and wage-price rigidity, a combination that produces interesting patterns of macroeconomic adjustment, which parallel the predictions of more traditional Keynesian models. Copyright 1990 by Royal Economic Society.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 100 (1990)
Issue (Month): 399 (March)
|Contact details of provider:|| Postal: 2 Dean Trench Street, Westminster, SW1P 3HE|
Phone: +44 20 3137 6301
Web page: http://www.res.org.uk/
More information through EDIRC
|Order Information:||Web: http://www.blackwellpublishers.co.uk/asp/journal.asp?ref=0013-0133|