Exchange Rate Movements and Inflation Performance : The Case of Italy /

This paper presents an empirical model to study the response of wages and prices to movements in the nominal exchange rate. A four-equation model is applied to Italian data to evaluate the response of tradeable goods prices, consumer prices, and wages following the lira's exit from the ERM in t...

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Bibliographic Details
Main Author: Ford, Robert
Other Authors: Krueger, Thomas
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 1995.
Series:IMF Working Papers; Working Paper ; No. 1995/041
Online Access:Full text available on IMF
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245 1 0 |a Exchange Rate Movements and Inflation Performance :   |b The Case of Italy /  |c Robert Ford, Thomas Krueger. 
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300 |a 1 online resource (28 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a This paper presents an empirical model to study the response of wages and prices to movements in the nominal exchange rate. A four-equation model is applied to Italian data to evaluate the response of tradeable goods prices, consumer prices, and wages following the lira's exit from the ERM in the fall of 1992. The model tracks reasonably well the inflation performance of tradeables, especially import prices. But it is argued that structural changes in the labor market contribute to an overprediction of price and wage inflation. 
538 |a Mode of access: Internet 
700 1 |a Krueger, Thomas. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 1995/041 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/1995/041/001.1995.issue-041-en.xml  |z IMF e-Library