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Exchange rate pass-through inflation and wage differentials in late-industrializing economies : the Mexican case

By: LÓPEZ, Tereza S.
Contributor(s): MÁNTEY, Guadalupe | QUINTANA, Luis.
Material type: materialTypeLabelArticlePublisher: São Paulo : Editora 34, out./dez. 2012Subject(s): Inflação | Política Econômica | Distribuição de Renda | MéxicoRevista de Economia Política = Brazilian Journal of Political Economy 32, 4, p. 634-655Abstract: This paper investigates exchange rate pass-through inflation, and the wage bargaining process, in a developing economy in which firms' market power is largely dependent on technical progress embodied in imported intermediates and capital goods. It develops a heterodox model of income distribution, based on theoretical post-Keynesian writers, and it presents supportive empirical evidence from the Mexican economy.
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This paper investigates exchange rate pass-through inflation, and the wage bargaining process, in a developing economy in which firms' market power is largely dependent on technical progress embodied in imported intermediates and capital goods. It develops a heterodox model of income distribution, based on theoretical post-Keynesian writers, and it presents supportive empirical evidence from the Mexican economy.

v. 32, n. 4(129)

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