Hostname: page-component-745bb68f8f-mzp66 Total loading time: 0 Render date: 2025-01-27T22:58:12.010Z Has data issue: false hasContentIssue false
  • English
  • Français

What Scandinavian economists have to say on past inflation in Belgium

Published online by Cambridge University Press:  17 August 2016

André Van Poeck
André Van Poeck*
Affiliation:
University of Antwerp (U.F.S.I.A.)*
Get access

Extract

In a previous issue of this Review, A. Kervyn de Lettenhove and V. Staes (1975) used the so-called Scandinavian inflation model as a frame of reference in order to determine in which case the Belgian system of automatic wage-indexing produces excessive wage inflation, leading to a deterioration of the competition position of the export-oriented sectors on the world market. A formal test of the model used was only given at an aggregative level, and the need for a more disaggregated approach was stressed.

In this paper, a disaggregated long-term version of the Scandinavian inflation model is formalized and tested for the Belgian economy. We first point out the assumptions underlying the model. On these assumptions the formalization is set up. Finally, the model is made subject to a formal test.

Type
Research Article
Information
Recherches Économiques de Louvain/ Louvain Economic Review , Volume 43 , Issue 3 , September 1977 , pp. 199 - 224
Copyright
Copyright © Université catholique de Louvain, Institut de recherches économiques et sociales 1977 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

*

I gratefully acknowledge the helpful comments on a previous draft by P. De Grauwe (Director C.E.S.-K.U. Leuven), A. Steinherr (I.R.E.S.-Louvain) and two anonymous referees. Remaining errors are mine.

References

Aukrust, O. (1970), PRIM I: A model of the Price and Income Distribution Mechanism in an Open Economy, The Review of Income and Wealth, Vol. 16, n° 1.Google Scholar
Driehuis, W., Van Heeringen, A. & De Wolff, P. (1975), Price Formation and the Inflationary Process in a Small Open Economy (The Netherlands), De economist, Vol. 123, nr. 4.Google Scholar
Edgren, G., Faxén, K.O. Odhner, C.E. (1973), Wage Formation and the Economy, George Allen & Unwin, London.Google Scholar
Friedman, M. (1974), Monetary Correction, The Institute of Economic Affairs, London.Google Scholar
Kervyn de Lettenhove, A. & Staes, V. (1975), Les salaires, les prix et l’index, Recherches Economiques de Louvain, Vol. 41, n° 2.Google Scholar
Nagar, A.L. (1962), Statistical Testing of the Accuracy of Forecasts, Statistica Neerlandica, vol. 16, nr. 3.Google Scholar
Nordhaus, W.D. (1972), The Worldwide Wage Explosion, Brooking Papers on Economic Activity, Vol. 3, n° 2.Google Scholar
Theil, H. (1958), Economic Forecasts and Policy, North-Holland, Amsterdam.Google Scholar
Van Poeck, A. (1977), Competitieve en beschermde sectoren in de Belgische economie. Economisch en Sociaal Tijdschrift, Vol. 31, n° 1.Google Scholar