Wages and prices in the UK

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This paper investigates the relationship between wages and prices in the UK using a VECM formulation and generalized impulse response functions and persistence profiles. Because of significant feedbacks, it finds that fluctuations in wage growth cannot be used directly to predict fluctuations in inflation.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/00036840210135845

Publication date: November 20, 2002

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