Microeconomics of Wage Flexibility and Price Expectations in Australia

The project has two aims. The first is to determine the nature, extent and causes of wage flexibility of Australian employees. The second is to understand variations in consumers' price expectations and their adjustment over time. Research of this kind has been largely absent in Australia, and is now possible using unique data that have been collected by the Melbourne Institute in collaboration with the Reserve Bank of Australia. A better understanding of inflation expectations and wage behaviour will lead to a more informed monetary policy and a better understanding of the workings of the wage system.

Funded by : ARC SPIRT Grant. Industry Partner: Reserve Bank of Australia.

Researchers : Elizabeth Webster, Don Harding and Yi-Ping Tseng

Research papers arising from the project are:

The research papers arising from this project is: