View in EDS HTML Full Text PDF Full Text

Is the RBA Economic Logic Faulty?*.

Saved in:
Bibliographic Details
Title: Is the RBA Economic Logic Faulty?*.
Authors: Pol, Eduardo1 (AUTHOR) epol@uow.edu.au
Source: Economic Papers. Sep2020, Vol. 39 Issue 3, p259-269. 11p.
Subject Terms: *Labor supply, Interest rates, Phillips curve, Inflation targeting, Logic
Company/Entity: Reserve Bank of Australia (Company)
Abstract: Over the last quinquennium, low wage growth has been a distinguishing feature of the Australian economy preventing the Reserve Bank of Australia (RBA) to achieve its inflation target. Notwithstanding the current record low cash rate, wage growth remains low. This paper casts doubts about the economic logic of the RBA in relation to the behaviour of wages. We argue that an unlimited supply of labour leads to a vertical Phillips curve in the short‐run, and therefore, significant wage growth cannot be expected to happen irrespective of how low the cash rate is. [ABSTRACT FROM AUTHOR]
Copyright of Economic Papers is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
Database: Education Research Complete
Full text is not displayed to guests.
FullText Links:
  – Type: pdflink
Text:
  Availability: 1
Header DbId: ehh
DbLabel: Education Research Complete
An: 145476980
AccessLevel: 6
PubType: Academic Journal
PubTypeId: academicJournal
PreciseRelevancyScore: 0
IllustrationInfo
Items – Name: Title
  Label: Title
  Group: Ti
  Data: Is the RBA Economic Logic Faulty?*.
– Name: Author
  Label: Authors
  Group: Au
  Data: <searchLink fieldCode="AR" term="%22Pol%2C+Eduardo%22">Pol, Eduardo</searchLink><relatesTo>1</relatesTo> (AUTHOR)<i> epol@uow.edu.au</i>
– Name: TitleSource
  Label: Source
  Group: Src
  Data: <searchLink fieldCode="JN" term="%22Economic+Papers%22">Economic Papers</searchLink>. Sep2020, Vol. 39 Issue 3, p259-269. 11p.
– Name: Subject
  Label: Subject Terms
  Group: Su
  Data: *<searchLink fieldCode="DE" term="%22Labor+supply%22">Labor supply</searchLink><br /><searchLink fieldCode="DE" term="%22Interest+rates%22">Interest rates</searchLink><br /><searchLink fieldCode="DE" term="%22Phillips+curve%22">Phillips curve</searchLink><br /><searchLink fieldCode="DE" term="%22Inflation+targeting%22">Inflation targeting</searchLink><br /><searchLink fieldCode="DE" term="%22Logic%22">Logic</searchLink>
– Name: SubjectCompany
  Label: Company/Entity
  Group: Su
  Data: <searchLink fieldCode="DE" term="%22Reserve+Bank+of+Australia+%28Company%29%22">Reserve Bank of Australia (Company)</searchLink>
– Name: Abstract
  Label: Abstract
  Group: Ab
  Data: Over the last quinquennium, low wage growth has been a distinguishing feature of the Australian economy preventing the Reserve Bank of Australia (RBA) to achieve its inflation target. Notwithstanding the current record low cash rate, wage growth remains low. This paper casts doubts about the economic logic of the RBA in relation to the behaviour of wages. We argue that an unlimited supply of labour leads to a vertical Phillips curve in the short‐run, and therefore, significant wage growth cannot be expected to happen irrespective of how low the cash rate is. [ABSTRACT FROM AUTHOR]
– Name: AbstractSuppliedCopyright
  Label:
  Group: Ab
  Data: <i>Copyright of Economic Papers is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.)
PLink https://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=ehh&AN=145476980
RecordInfo BibRecord:
  BibEntity:
    Identifiers:
      – Type: doi
        Value: 10.1111/1759-3441.12289
    Languages:
      – Code: eng
        Text: English
    PhysicalDescription:
      Pagination:
        PageCount: 11
        StartPage: 259
    Subjects:
      – SubjectFull: Labor supply
        Type: general
      – SubjectFull: Interest rates
        Type: general
      – SubjectFull: Phillips curve
        Type: general
      – SubjectFull: Inflation targeting
        Type: general
      – SubjectFull: Logic
        Type: general
      – SubjectFull: Reserve Bank of Australia (Company)
        Type: general
    Titles:
      – TitleFull: Is the RBA Economic Logic Faulty?*.
        Type: main
  BibRelationships:
    HasContributorRelationships:
      – PersonEntity:
          Name:
            NameFull: Pol, Eduardo
    IsPartOfRelationships:
      – BibEntity:
          Dates:
            – D: 01
              M: 09
              Text: Sep2020
              Type: published
              Y: 2020
          Identifiers:
            – Type: issn-print
              Value: 08120439
          Numbering:
            – Type: volume
              Value: 39
            – Type: issue
              Value: 3
          Titles:
            – TitleFull: Economic Papers
              Type: main
ResultId 1