Incomes Policies in an Open Economy: Domestic and External Interactions

  • John Sheahan


Is it possible to have an independent national incomes policy in an open economy? The question is closely linked to a more general issue of analysis and evidence: Are prices determined primarily by current changes in demand and supply in individual markets, as economists have from time to time suggested, or are they based primarily on wage costs? If the former, an incomes policy in an open economy is an extremely doubtful proposition. If the latter, it is at least conceivable to make important headway in restraining national inflation through incomes policy.


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Copyright information

© Springer Science+Business Media Dordrecht 1981

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  • John Sheahan

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