Research Discussion Paper – RDP 9006 Wage Contracts, Sticky Prices and Exchange Rate Volatility: Evidence from Nine Industrial Countries

Contents

• Introduction
• The Model
• Optimal Wage Contracts
• Estimation
• Results
• Summary and Conclusions
• References
• Appendix: Data Definitions and Sources

I am grateful to Larry Ball, Bill Branson and especially Ben Bernanke for helpful comments. Any errors are mine alone. The views expressed herein are those of the author and do not necessarily reflect the views of the Reserve Bank of Australia.