Abstracts » Economics

Wage drift and the relevance of centralised wage setting

Article Abstract:

A study was conducted to analyze the centralization of the system of wage system in four major Nordic countries. An economic model characterized by identical companies producing the same good was utilized in the study. Results indicated no offsetting effect in the system of wage setting in the Nordic nations. However, findings showed that the institutional system of wage formation may be affected by nominal rigidities that may hinder wage restraint during growths in money wage in little increments.

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Implications of economic interdependence for endogenous wage indexation decisions

Article Abstract:

A study was conducted to characterize how economic interdependence influences the indexation decisions of atomistic wage setters under an environment wherein monetary policies do not support stochastic disturbances before decision making policies. Results showed that indexation choices may either be strategic complements or strategic substitutes. Findings also indicated that strategic complementarity correlated with increases in the degree of economic interdependence.

Wages, Wages and salaries

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The credibility of a fixed exchange rate: how reputation is gained or lost

Article Abstract:

An examination of the interest rate differential between each of the four largest Nordic countries and the countries of their foreign currency baskets within 1978/79-1992 was conducted to investigate the formation of the reputation of the government. Findings reveal that when there is no devaluation, the improvement in government reputation is larger and the larger the prior devaluation expectations. This is affirmed by evidence for Norway.

Foreign Currency Management, Prices and rates, Foreign exchange, Foreign exchange rates, Interest rates, Norway, Currency devaluation, Devaluation (Currency)

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