The price calculation of impact is part of the model of the modified Phillips curve.

Hereby one can simulate and simplified represent the connection between wages, prices by products and the unemployment ratio in a country. Different solutions use this model among other things the acceleration hypothesis.

From this applies:

• <math>w_t - w_ {T-1} = hy_t + C (p_ {T-1} - p_ {t - 2}), \ quad h > 0, \; 0 < C < 1</math>

W_t the rate of wage and salary increases (= w _t - w _ {T-1}) is, p_ {T-1} the natural unemployment ratio, p_ {t - 2} the actual unemployment rate, h a positive factor, C a positive constant between 0 and 1, p _t - p _ {T-1}) and y_t the expected inflation rate, in each case for the period t

Articles in category "Price calculation of impact"

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