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Incomes Policies, Expectations and the NAIRU

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  • Wolfgang Pollan

    (WIFO)

Abstract

Since the 1960s, several countries have adopted incomes policies in various forms to control inflation that had been interpreted as the result of a distributional struggle between business and labour unions. Recent writings on the NAIRU, however, ignore past policy interventions in the wage and price setting system, in the formation and propagation of inflation expectations, in particular. Some of the problems inherent in such an approach are illustrated by applying the standard tools of NAIRU analysis to the Austrian economy, an economy that has been subject to a variety of policy measures.

Suggested Citation

  • Wolfgang Pollan, 2012. "Incomes Policies, Expectations and the NAIRU," WIFO Working Papers 433, WIFO.
    • Handle: RePEc:wfo:wpaper:y:2012:i:433
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    Keywords

    Lucas critique; NAIRU; expectations; incomes policies;
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