Growth, Commodity Prices, Inflation and the Distribution of Income

42 Pages Posted: 9 Feb 2007

See all articles by Harry Bloch

Harry Bloch

Curtin University of Technology - Curtin Business School - School of Economics and Finance

Alfred Michael Dockery

Curtin University - School of Economics and Finance; Curtin University - Centre for Research in Applied Economics; Bankwest Curtin Economics Centre

C. W. Morgan

University of Nottingham

David Sapsford

University of Liverpool Management School (ULMS) - Economics Division

Abstract

A primary commodity price boom is underway. Given the role of internationally traded primary commodities as inputs into the productive process in the industrialized world, an important question arises: namely what effects will this price-boom exert upon wage and price inflation in industrialized countries? In order to address this question, we specify and estimate a system of equations in which the key dependent variables are world commodity prices, the domestic inflation rate for finished goods and the rate of domestic industrial wage inflation. This model is estimated against data for each of three major industrialized countries: Japan, the UK and the USA and the implications of the results thus obtained are explored.

Suggested Citation

Bloch, Harry and Dockery, Alfred Michael and Morgan, Christopher Wyn and Sapsford, David, Growth, Commodity Prices, Inflation and the Distribution of Income. Metroeconomica, Vol. 58, No. 1, pp. 3-44, February 2007. Available at SSRN: https://ssrn.com/abstract=962208 or http://dx.doi.org/10.1111/j.1467-999X.2007.00259.x

Harry Bloch

Curtin University of Technology - Curtin Business School - School of Economics and Finance ( email )

Curtin University
GPO Box U 1987
Perth, 6845
Australia
+61 8 9266 2035 (Phone)
+61 8 9266 3026 (Fax)

Alfred Michael Dockery

Curtin University - School of Economics and Finance ( email )

GPO Box U 1987
Perth, Western Australia 6845
Australia

Curtin University - Centre for Research in Applied Economics ( email )

GPO Box U1987
Perth, Western Australia 6845
Australia

Bankwest Curtin Economics Centre ( email )

GPO Box U1987
Perth, WA 6845
Australia
61 8 9266 1744 (Phone)
61 8 9266 2373 (Fax)

HOME PAGE: http://https://bcec.edu.au/

Christopher Wyn Morgan

University of Nottingham ( email )

University Park
Nottingham, NG8 1BB
United Kingdom

David Sapsford (Contact Author)

University of Liverpool Management School (ULMS) - Economics Division ( email )

Eleanor Rathbone Building
Bedford Street North
Liverpool L69 7ZA
United Kingdom
+44 (0)151 795 3701 (Phone)
+44 (0)151 795 3001 (Fax)

HOME PAGE: http://www.liv.ac.uk/management/

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