{"id":113534,"date":"2024-01-22T18:34:46","date_gmt":"2024-01-22T17:34:46","guid":{"rendered":"https:\/\/www.wifo.ac.at\/publication\/113534\/"},"modified":"2024-11-14T13:18:39","modified_gmt":"2024-11-14T12:18:39","slug":"employment-inflation-and-income-distribution-in-an-open-economy-pricing-to-market-in-a-modified-nairu-model","status":"publish","type":"publication","link":"https:\/\/www.wifo.ac.at\/en\/publication\/113534\/","title":{"rendered":"Employment, Inflation and Income Distribution in an Open Economy. Pricing-to-market in a Modified NAIRU Model"},"content":{"rendered":"","protected":false},"featured_media":0,"template":"","class_list":["post-113534","publication","type-publication","status-publish","hentry"],"acf":{"subtitle":"","text":"The paper modifies a standard NAIRU model by implementing \"pricing-to-market\" as the basic assumption for the price setting behaviour of firms in an open economy. This entirely changes the outcomes of the model: First, inflation in equilibrium is stable at any rate of unemployment; the long-run Phillips curve is horizontal. Second, income distribution varies with the level of employment. Third, supplemented with a demand equation which allows for effects of both income distribution and international competitiveness, the NAIRU ceases to be a \"strong attractor\". These characteristics to a certain extent open up the space for expansive wage and demand policies.","onlinedate":"2010-02-22 01:00:00","lang":"English","publication_series":"","publication_date":"20100201","publication_date_year":"","publication_date_full":false,"publication_num_pages":"25","keywords":"[\"Demand\",\"Distribution\",\"Inflation\",\"NAIRU\",\"Wages\"]","jelcodes":"[]","related_publications":"[]","pdf":415090,"zip":null,"link":"","monthly_report":true,"monthly_report_main":false,"monthly_report_volume":"","monthly_report_pages":"","monthly_report_pages_sort":"0","issue":"360","journal":"WIFO Working Papers","publisher":"","invisible":false,"external":false,"embargo_date":null,"types":[44410],"research_groups":[3500],"collaboration":"","persons":[3567],"persons_data":"[{\"personId\":3567,\"personName\":\"Stefan Ederer\",\"organisationNames\":[]}]","clients":[],"subclients":[],"partners":[],"topics":[],"host_publication_title":"","host_publication_subtitle":"","place_of_publication":"","host_publication_editors":"[]","type_description":"","output_media":"","chapter":"","article_number":"","scientific_assistance":"[]","scientific_review":"[]","version":"","release_date":null,"expiration_date":null,"surveyor":"","research_assistance":"","edv":"","additional_info_de":"","additional_info_en":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.3 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Employment, Inflation and Income Distribution in an Open Economy. Pricing-to-market in a Modified NAIRU Model - WIFO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.wifo.ac.at\/en\/publication\/113534\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Employment, Inflation and Income Distribution in an Open Economy. 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