01828cas a2200253 a 4500 AALejournalIMF000517 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451976991 1018-5941 BD-DhAAL BD-DhAAL Agenor, Pierre-Richard. Money, Wages and Inflation in Middle-Income Developing Countries / Pierre-Richard Agenor, Willy Hoffmaister. Washington, D.C. : International Monetary Fund, 1997. 1 online resource (38 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines the short-run links between money growth, exchange rate depreciation, nominal wage growth, the output gap, and inflation in Chile, Korea, Mexico, and Turkey, using a generalized vector autoregression analysis. Nominal historical wage shocks are shown to have an important effect on movements in inflation only in Mexico. Generalized impulse response functions show that a positive historical shock to nominal wage growth generates a transitory but significant reduction in output. Inflation increases in all countries, particularly Mexico. A positive shock to nominal money growth raises real cash balances on impact and exerts an expansionary effect on output, despite an increase in real wages. Mode of access: Internet Hoffmaister, Willy. IMF Working Papers; Working Paper ; No. 1997/174 Full text available on IMF http://elibrary.imf.org/view/journals/001/1997/174/001.1997.issue-174-en.xml IMF e-Library