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Of Wage-Tax Trade-offs and Macroeconomic Mixes (1981)

In: The Reform of Macroeconomic Policy

Author

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  • J. O. N. Perkins

    (University of Melbourne)

Abstract

This chapter discusses the relationships between the choice of an appropriate combination of macroeconomic instruments, on the one hand, and the rate of increase in money incomes, especially money wage rates, on the other. It makes no assumptions or assertions about the possibility of achieving any particular form of prices and incomes policies, nor about the costs and benefits of achieving such policies either by direct controls or by agreement. It merely takes the view that, whatever the desirability or feasibility of prices and incomes policies may be, the likelihood of their being successful will be enhanced by an appropriate choice of macroeconomic instruments. It is also argued that any sort of prices and incomes policy is virtually certain to be ineffective if resorted to in the hope of thereby escaping the consequences of using inflationary combinations of macroeconomic instruments.

Suggested Citation

  • J. O. N. Perkins, 2000. "Of Wage-Tax Trade-offs and Macroeconomic Mixes (1981)," Palgrave Macmillan Books, in: The Reform of Macroeconomic Policy, chapter 10, pages 156-166, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-28873-7_10
    DOI: 10.1057/9780230288737_10
    as

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