Discussion about this post

User's avatar
Paddy von Ossenderrcht's avatar

Wonder the impact if nations/economies introduced protectionism & Indl. Policy along with dual pricing policy too during a transition period- reviewed periodically/sectorally?

Not free market forces could be the critique though!

Expand full comment
Philalethes's avatar

Interesting analysis. Allow me to qualify it in the light of less than full wage equalisation between the tradeable and non-tradeable sectors (which is the mechanism of propagation of shocks between the two sectors): would not the ‘multiplier’ of a change in the prices in the tradeable sector on the prices of the non-tradeable sector be lower, the more rigid the labour market is (ie, existence of a wedge between the wages of the two sectors) and the more informal the non-tradeable sector (ie, large positive wedge between tradeable and non-tradeable sector)?

Expand full comment
3 more comments...

No posts