{"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":"","citations":"{\"apa\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_apa rendering_contributiontoperiodical rendering_apa rendering_contributiontoperiodical_apa\\\"><span>Ederer, S.<\\\/span> (2010). <span>Employment, Inflation and Income Distribution in an Open Economy. Pricing-to-market in a Modified NAIRU Model<\\\/span>. <span><em>WIFO Working Papers<\\\/em><\\\/span>, (360). <a onclick=\\\"window.open(this.href, '_blank','noopener,noreferrer'); return false;\\\" href=\\\"https:\\\/\\\/www.wifo.ac.at\\\/wwa\\\/pubid\\\/38422\\\" class=\\\"link\\\"><span>https:\\\/\\\/www.wifo.ac.at\\\/wwa\\\/pubid\\\/38422<\\\/span><\\\/a><\\\/div>\",\"vancouver\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_vancouver rendering_contributiontoperiodical rendering_vancouver rendering_contributiontoperiodical_vancouver\\\"><span>Ederer S<\\\/span>. <span class=\\\"title\\\"><span>Employment, Inflation and Income Distribution in an Open Economy. Pricing-to-market in a Modified NAIRU Model<\\\/span><\\\/span>. <span>WIFO Working Papers<\\\/span>. 2010 Feb;(360).<\\\/div>\",\"bibtex\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_bibtex rendering_contributiontoperiodical rendering_bibtex rendering_contributiontoperiodical_bibtex\\\"><div>@misc{a5ecd7fda74341c09b33e15bc4b58720,<\\\/div><div>  title    = \\\"Employment, Inflation and Income Distribution in an Open Economy. Pricing-to-market in a Modified NAIRU Model\\\",<\\\/div><div>  abstract = \\\"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.\\\",<\\\/div><div>  keywords = \\\"Demand, Distribution, Inflation, NAIRU, Wages, Demand, Distribution, Inflation, NAIRU, Wages\\\",<\\\/div><div>  author   = \\\"Stefan Ederer\\\",<\\\/div><div>  year     = \\\"2010\\\",<\\\/div><div>  month    = feb,<\\\/div><div>  language = \\\"English\\\",<\\\/div><div>  journal  = \\\"WIFO Working Papers\\\",<\\\/div><p>}<\\\/p><\\\/div>\",\"ris\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_ris rendering_contributiontoperiodical rendering_ris rendering_contributiontoperiodical_ris\\\"><p>TY  - GEN<\\\/p><p>T1  - Employment, Inflation and Income Distribution in an Open Economy. Pricing-to-market in a Modified NAIRU Model<\\\/p><p>AU  - Ederer, Stefan<\\\/p><p>PY  - 2010\\\/2<\\\/p><p>Y1  - 2010\\\/2<\\\/p><p>N2  - 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.<\\\/p><p>AB  - 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\\\". 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