Research Discussion Paper – RDP 8611 The Effectiveness of Fiscal Policy in an Economy with Anticipatory Wage Contracts



This paper was written while I was visiting the Reserve Bank of Australia, on leave from the University of Essex. I am grateful to Adrian Blundell-Wignall for providing some useful suggestions. This paper was presented to the Australasian Econometric Society Meeting held at Melbourne in August 1986. The views expressed herein are solely those of the author and are not necessarily shared by the Reserve Bank of Australia. [*]