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- W339365883 abstract "This chapter discusses the properties of the KESSU III model by analyzing the effects of wage increases and fiscal policy by means of simulation experiments. Initially, the effects of nominal wage increase were analyzed in the case where economic policy did not respond to the decline of the current account due to the increase. Finally, the effects of a wage increase are considered in the case where the external balance is kept unchanged by means of fiscal policy. As there is no monetary block in the model, no crowding-out effects through the money market can take place. As interest rates in Finland have largely been administratively regulated, the exogenous nominal interest rate in the model is assumed to remain unchanged. The model does not include a wage block either, the nominal average wages are determined exogenously. Incomes policy in Finland has quite often been based on extensive, centralized settlements." @default.
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- W339365883 date "1987-01-01" @default.
- W339365883 modified "2023-10-15" @default.
- W339365883 title "KESSU III: The Effect of Wage Increases and Fiscal Policy" @default.
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- W339365883 doi "https://doi.org/10.1016/b978-0-444-70262-3.50012-2" @default.
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