Phillips curve in Canada: a tale of wage bargaining and tariff rate

Auteurs-es

  • Adviti Devaguptapu SRM University AP, Mangalagiri, India
  • Pradyumna Dash Indian Institute of Management Raipur

Mots-clés :

Phillips curve, Time-varying parameter vector autoregressive model (TVP-VAR), price-setting behavior, wage-setting behavior

Résumé

In this paper, we re-examine the Phillips curve for Canada over the period of 1971(Q1)–2018(Q4) and find that the impulse response of inflation to the unemployment gap has reduced over time. On further examination, we find that changes in both tariff rate and collective wage bargaining power have led to the reduced sensitivity of inflation to the unemployment gap. On comparison, the role of change in the collective bargaining has greater influence on the reduction in the sensitivity than that of change in the tariff rate.

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Publié-e

2023-12-27

Numéro

Vol. 15 No. 3-4 (2023)

Rubrique

Articles

Licence

© adviti devaguptapu, Pradyumna Dash 2023

Licence Creative Commons

Cette œuvre est sous licence Creative Commons Attribution - Pas d'Utilisation Commerciale 4.0 International.

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