RDP 33 Inflation: Prices and Earnings in Australia

Contents

• Introduction
• Theoretical Model
• Earnings
• Prices
• Implications for the Analysis of Inflation and Anti-Inflation Policy
• Appendix A: Derivation of Theoretical Model
• Appendix B: Data Notation, Definitions and Sources
• Appendix C: Data
• References

* The work appearing in this paper was originated by Professor Michael Parkin during a recent visit to the Reserve Bank of Australia. The work is an extension of ideas presented in his article appearing in the Australian Economic Papers, December 1973. This paper in no way represents a final version of the work being undertaken and is circulated for discussion purposes as a progress report on a continuing project. The present version has already benefited considerably from comments by Jim Henderson, Bill Norton, Peter Jonson, Graeme Thompson and others in Special Projects Section of Research Department. We regret that many of the suggestions involve considerable further work and so must remain the basis of further work to be carried out on this project. The analysis and opinions are those of the authors and do not necessarily reflect the ojnjons of the Reserve Bank of Australia.