Front Matter Page
IMF Institute
Authorized for distribution by Eric V. Clifton
Contents
I. Introduction
II. What do they care about?
III. Model
A. Setup
B. Flexible-Price Equilibrium
C. Manipulating RER
1. Wages that are too high
2. Wages that are too low
IV. Political Economy Connection
V. Discussion
VI. Conclusions
Appendix I. Wages and RER in the Two-Sector Two-Factor Model
Appendix II. Two-Sector Model: Consumption Side
Appendix III. Two-Sector Model with Labor Input
Appendix IV. Adding Intertemporal Elements
Appendix V. Welfare Evaluation
Appendix VI. Intertemporal Analysis
References