Discontinuous wages adjustments, inflation and economic fluctuations


  • Alejandro Rodríguez Arana Universidad Iberoamericana




wages, inflation, Phillis curves


If nominal wages adjust less frequently than prices, a constant rate of growth of the quantity of money will produce cyclical fluctuations of production and inflation. The same phenomenon can modify the average long run production of the economy, generating Phillips curves sometimes with a negative slope and some other times with a positive slope.



Metrics Loading ...


Akerlof, G. y J. Yellen (1985). “A near-rational model of the business cycle, with wage and Price inertia”, Quarterly Journal of Economics 100, (suplemento), pp. 823-838.

Akerlof, G., W. Dickens y G. Perry (2000). “Near rational wage and price setting and the optimal rates of inflation and unemployment”, http://emlab.berkeley.edu.

Banco de México (2001). Banco de datos, http://www.banxico.org.mx

Bean, C. (1983). “Targeting Nominal Income: an Appraisal”, Economic Journal, 93, pp. 806-819.

Blanchard, O. (1986). “The wage price spiral”, Quarterly Journal of Economics, 101, pp. 543-565.

Blanchard, O. y S. Fisher (1989). Lectures on Macroeconomics, MIT Press, Mass.

Bruno, M. y J. Sachs (1985). Economics of worldwide stagflation, Harvard University Press, Massachusetts.

Caplin, A. y D. Spulber (1987). “Menu costs and the neutrality of money”, Quarterly Journal of Economics, 102, pp. 703-725.

Caplin, A. y J. Leahy (1991). “State-dependent pricing and the dynamics of money and output”, Quarterly Journal of Economics, 106, pp. 683-708.

Cuthberson, K., S. Hall y M. Taylor (1992). Applied econometric techniques, Harvester Wheatsheaf.

Danziger, L. (1992). “On the prevalence of labor contracts with fixed duration”, American Economic Review, 22, pp. 195-206.

Devereaux, M. (1989). “A positive theory of inflation and inflation variance”, Economic Inquiry, 27, pp. 105-116.

Dornbusch, R. y M. Simonsen (1983). Inflation, debt and indexation, MIT Press, Massachusetts.

Dornbusch, R. S. Fischer y R. Startz (2001). Macroeconomics, McGraw Hill.

Fischer, S. (1977a). “Long term contracts, rational expectations and the optimal money supply rule”, en R. Lucas y T. Sargent (comps.) Rational expectations and econometric practice, vol. 1, 1981, University of Minessota Press, pp. 261-275.

Fischer, S. (1977b). “Wage indexation and macroeconomic stability”, en K. Brunner y A. Meltzer (eds.), Stabilization of the domestic and international economy, Carnegie-Rochester conference series in public policy, vol. 5, North Holland.

Friedman, M. (1969). The optimum quantity of money and other essays, Aldine, Chicago.

Gonzaga, G. y J. C. Scandiuzzi (1998). “How does government wage policy affect wage bargaining in Brazil?”, http://www.econ.puc-rio.br.

Gray, J. (1978). “On Indexation and contract lenght”, Journal of Political Economy, 86, pp. 1-18.

Gray, J. (1976). “Wage Indexation: A macroeconomic approach”, Journal of Monetary Economics, 2, pp. 221-235.

Jadresic, E. (1996). Wage indexation and macroeconomic stability: The Gray-Fischer theorem revisited, IMF WP 96/121.

Layard, R., S. Nickell y R. Jackman (1992). Unemployment: Macroeconomic performance and the labour market, Oxford, Oxford University Press.

Mankiw, N. G. (1985). “Small menu costs and large business cycle: A macroeconomic model of monopoly”, Quarterly Journal of Economics, 100, pp. 529-539.

McDonald, I. y R. Solow (1981). “Wage bargaining and employment”, American Economic Review, 71, pp. 896-908.

Meade, J. (1978). “The meaning of internal balance”, Economic Journal, 88, pp. 423-435.

Poole, W. (1970). “Optimal choice of monetary policy instruments in a simple sthocastic macro model”, Quarterly Journal of Economics, 84, pp. 197-216.

Romer, D. (1996). Advanced macroeconomics, McGraw Hill.

Sheshinsky, E. y Y. Weiss (1983). “Optimum pricing policy under sthocastic inflation”, Review of Economic Studies, 50, pp. 513-529.

Sheshinsky, E. y Y. Weiss (1977). “Inflation and costs of price adjustment”, Review of Economic Studies, 44, pp. 287-303.

Simonsen, M. (1983). “Indexation: current theory and Brazilian experience”, en R. Dornbusch y M. Simonsen (eds.), Inflation, debt and indexation, MIT Press, Massachusetts.

Taylor, J. (1980). “Aggregate dynamics and staggered contracts”, Journal of Political Economy, 1, pp. 1-23.

Taylor, J. (1979a). “Staggered wage setting in a macro model”, American Economic Review, 69, pp. 108-113.

Taylor, J. (1979b). “Estimation and control of a macroeconomic model with rational expectations”, Econometrica, 47, pp. 1267-1286.



How to Cite

Rodríguez Arana, A. (2002). Discontinuous wages adjustments, inflation and economic fluctuations. Estudios Económicos De El Colegio De México, 17(1), 129–161. https://doi.org/10.24201/ee.v17i1.196