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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.)*
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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 

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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

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