Wages, Profits, and Macroeconomic Adjustment: A Comparative Study

  title={Wages, Profits, and Macroeconomic Adjustment: A Comparative Study},
  author={Jeffrey D. Sachs},
  • J. Sachs
  • Published 1 August 1980
  • Economics
The behavior of real wages has complicated macroeconomic policy in the industrialized world during the 1970s. Many commentators have discussed the extraordinary increase in wage inflation in Europe and Japan at the end of the last decade. Few have noted that the nominal wage gains resulted in remarkable increased in real wages. The five large economies outside North America in the Organization for Economic Cooperation and Development (OECD) had rapid growth of real hourly compensation in 1969… 
Wage Flexibility, Social Welfare Expenditures, and Monetary Restrictiveness
In October 1979, the U.S. Federal Reserve initiated a program of severe monetary restraint. The federal funds rate soared 2.3 points, and the rates of growth of the major monetary aggregates fell
Input Price Shocks and the Slowdown in Economic Growth: The Case of U.K.Manufacturing
This paper provides a theoretical and empirical analysis of the effects of input price shocks on economic growth, with a focus on United Kingdom manufacturing in the 1970s. The theoretical model
Trends in Unemployment, Wages and Productivity: The Case of Japan
Along with the high savings ratio, the functioning of the labour market is one of the most important factors behind the macroeconomic performance of the postwar Japan, which foreign observers have
Changes in the Cyclical Pattern of Real Wages: Evidence from Nine Countries, 1955-80
monetary policy. In the United Kingdom, the monetarist vice has gripped the economy even longer, and similar deflationary policies have been in effect in other Western economies. Interestingly
Inflation and Labor-Market Adjustment
The implications of downward nominal and ex ante real wage rigidity,and of wage contracting for the dispersion of relative wage changes in the presence of price inflation are examined. Rigidity
Inflation and Labor-Market Adjustment
The implications of downward nominal and ex ante real wage rigidity,and of wage contracting for the dispersion of relative wage changes in the presence of price inflation are examined. Rigidity
Does a Flexible Industry Wage Structure Increase Employment?: the U.S. Experience
This paper examines the flexibility of wages across industries inthe U.S. and seeks to determine the potential impact which changes in the industrial wage structure may have for employment. With
Inflationary Momentum and Stabilization Policy : A US perspective : Journal of Public Policy
The inflationary experience of the industrial countries in recent years is explained in terms of institutional and structural changes promoting wage-price momentum. Developments such as the
Productivity Growth, Inflation, and Unemployment: German and American Wage and Price Dynamics: Differences and Common Themes
The evolution of unemployment in West Germany and the U. S. stands in sharp contrast, with German unemployment much lower from 1960 to the early 1970s but substantially higher from 1984 to 1988. This


Determinants of Wage Inflation Around the World
SINCE 1973, dramatic and disruptive increases in the prices of fuel and food have captured the spotlight in discussions of price inflation in the United States and other economies. Besides
The Demand for and Supply of Inflation
  • R. Gordon
  • Economics
    The Journal of Law and Economics
  • 1975
ECONOMIC research on the causes of inflation has been primarily devoted to the theoretical and empirical study of the links between government policy variables and the rate of inflation. While debate
World Inflation and Monetary Accommodation in Eight Countries
Note: This research has been supported by the National Science Foundation. I am grateful to my colleague John Bilson for aiding me in the acquisition of data from the International Monetary Fund, and
North-Holland, 1979), pp
  • 41-69 and 71-98, respectively; Victor Argy and Joanne Salop, "Price and Output Effects of Monetary and Fiscal Expansion in a Two-Country World under Flexible Exchange Rates" (International Monetary Fund, May 1979); and Louka T. Katseli-Papaefstratiou, "Transmission of External Price Disturbances an
  • 1979
Supply versus Demand Approaches to the Problem of Stagflation7 Working PaperInternational Adjustment
  • National Bureau of Economic Research
  • 1979
Nordhaus, irg Worldwide Wage Explosion
  • BPEA
  • 1972
Worker MilitancyIndention of Wages and Salaries in Developed Economies JMF Staff Papers Characteristics of Agreements Covering 1,000 Workers or More
  • Pot a more detailed discussion see .Barkin International Labour Office, Collective Bargaining In industrialised Market EconomIes
  • 1972
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