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| Author: | Ambler, S. |
| Title: | Fiscal and monetary policy in an open economy with staggered wages |
| Journal: | Weltwirtschaftliches Archiv
1988 : VOL.124:1, p. 58-73 |
| Index terms: | WAGE DETERMINATION FISCAL POLICY MONETARY POLICY |
| Language: | eng |
| Abstract: | Recent investigations have demonstrated, that short-term macroeconomic policy may have perverse effects if anticipated. E. g. if expansive fiscal policy is expected, this may push up real interest and (in an open economy) lead to revaluation, both of which reduce aggregate demand. The present paper establishes the perverse short-term macroeconomic effect of expansionary fiscal policy in an open economy through another channel, namely forward looking wage contracts. |
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