Commodity Prices, Wages and US Inflation in the Twentieth Century

We consider the impact of primary commodity prices and wages on U.S. inflation in the context of markup pricing. We estimate separate equations for world commodity prices, wage rates, and domestic finished goods prices using annual data for 1900 to 2001. We find complete pass-through of commodity...

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Main Authors: Bloch, Harry, Dockery, Alfred Michael, Sapsford, D.
Format: Journal Article
Published: ME Sharpe 2004
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/11640
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author Bloch, Harry
Dockery, Alfred Michael
Sapsford, D.
author_facet Bloch, Harry
Dockery, Alfred Michael
Sapsford, D.
author_sort Bloch, Harry
building Curtin Institutional Repository
collection Online Access
description We consider the impact of primary commodity prices and wages on U.S. inflation in the context of markup pricing. We estimate separate equations for world commodity prices, wage rates, and domestic finished goods prices using annual data for 1900 to 2001. We find complete pass-through of commodity prices and wages into inflation of finished goods prices, with both input prices having a positive and statistically significant impact. Demand has a direct negative impact on finished goods prices, a delayed and temporary positive impact on wages (through the unemployment rate), and a strong positive impact on primary commodity prices.
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institution Curtin University Malaysia
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publishDate 2004
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spelling curtin-20.500.11937-116402018-04-05T05:14:33Z Commodity Prices, Wages and US Inflation in the Twentieth Century Bloch, Harry Dockery, Alfred Michael Sapsford, D. primary commodity prices inflation wages markup pricing We consider the impact of primary commodity prices and wages on U.S. inflation in the context of markup pricing. We estimate separate equations for world commodity prices, wage rates, and domestic finished goods prices using annual data for 1900 to 2001. We find complete pass-through of commodity prices and wages into inflation of finished goods prices, with both input prices having a positive and statistically significant impact. Demand has a direct negative impact on finished goods prices, a delayed and temporary positive impact on wages (through the unemployment rate), and a strong positive impact on primary commodity prices. 2004 Journal Article http://hdl.handle.net/20.500.11937/11640 ME Sharpe restricted
spellingShingle primary commodity prices
inflation
wages
markup pricing
Bloch, Harry
Dockery, Alfred Michael
Sapsford, D.
Commodity Prices, Wages and US Inflation in the Twentieth Century
title Commodity Prices, Wages and US Inflation in the Twentieth Century
title_full Commodity Prices, Wages and US Inflation in the Twentieth Century
title_fullStr Commodity Prices, Wages and US Inflation in the Twentieth Century
title_full_unstemmed Commodity Prices, Wages and US Inflation in the Twentieth Century
title_short Commodity Prices, Wages and US Inflation in the Twentieth Century
title_sort commodity prices, wages and us inflation in the twentieth century
topic primary commodity prices
inflation
wages
markup pricing
url http://hdl.handle.net/20.500.11937/11640