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Supply of Output and Inflation in EC Countries

In: Exchange Rates, Money and Output

Author

Listed:
  • Paul Grauwe

    (Catholic University of Leuven)

  • Michele Fratianni

    (Indiana University)

  • Mustapha K. Nabli

    (University of Tunis)

Abstract

The theory of Chapter 2 explains domestically-produced output, domestic prices and the overall price level in terms of foreign prices, money, the exchange rate and other impulses. The central feature of the theory is the Lucas supply of output extended to an open economy which incorporates, in addition to inflation-rate misperceptions, terms-of-trade effects, the ‘tax wedge’ and wage indexation.

Suggested Citation

  • Paul Grauwe & Michele Fratianni & Mustapha K. Nabli, 1985. "Supply of Output and Inflation in EC Countries," Palgrave Macmillan Books, in: Exchange Rates, Money and Output, chapter 3, pages 22-49, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-17699-1_3
    DOI: 10.1007/978-1-349-17699-1_3
    as

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