Stagflationary bias and the interaction of monetary policy and wages in a unionized economy

Economics Research Centre, School of Economic and Social Studies, University of East Anglia, Norwich NR4 7TJ, U.K. The paper investigates the claim of Gylfason and Lindbeck (Public Choice, 1994) that a stagflationary bias arises from the interaction between monetary policymaking and wagesetting if, among other things, the government and unions share a concern for inflation. It uses a game theoretic model of this interaction, in which the government plays an economy-wide union. Though simple, this nests several other models as special cases. In that corresponding to Gylfason and Lindbeck's model, the factors which they identify are shown to be sufficient for stagflationary bias, in a specified sense. However, for the union to care about inflation is not a necessary condition. The main result of the paper concerns the more general model. It establishes a set of necessary and sufficient conditions for stagflationary bias, as previously defined. These conditions do not include a shared concern for inflation. The paper comments briefly on the significance of this result for stagflation and economic modelling.     

Reviews

Barbara Caine and Rosemary Pringle (eds), Transitions: New Australian Feminisms (Allen & Unwin) 1995.

Peta Tait, Converging Realities: Feminism in Australian Theatre (Currency Press) Sydney, 1994.

Pauline Johnson, Feminism as Radical Humanism (Allen & Unwin) St Leonards, 1994.

Denise Russell, Women, Madness and Medicine (Polity Press) Cambridge, 1995.

R.W‐ Connell, Masculinities (Allen & Unwin) St Leonards, 1995.

Margaret Maynard, Fashioned from Penury: Dress as Cultural Practice in Colonial Australia (Cambridge University Press) Melbourne, 1994.

Joy Damousi, Women Come Rally: Socialism, Communism and Gender in Australia, 1890–1955 (Oxford University Press) Melbourne, 1995.

Susan Sheridan, Along the Faultlines: Sex, Race and Nation in Australian Women's Writing, 1880s—1930s (Allen & Unwin) Sydney, 1995.     

C: Reviews and notes bibliographies and works of reference

INTRODUCTORY GUIDE TO MIDDLE EASTERN AND ISLAMIC BIBLIOGRAPHY. (Middle East Libraries Committee Research Guides, 5.) Edited by PAUL AUCHTERLONIE. Oxford, Middle East Libraries Committee, 1990. v, 84pp. £9.50.

SUFI WOMEN. By JAVAD NURBAKHSH. Translated by L. Lewisohn. Rev. ed., London & New York, Khaniqahi‐Nimatullahi Publications, 1990. 263pp. 8 illustrations. £7.95.

WHO'S WHO IN THE ARAB WORLD 1990–1991. Tenth edition, thoroughly revised and completed. München, New York, London, Paris, K.G. Saur, for Publitec Publications, 1990. 927 pp. £180.00

INVENTARIO DE FOLLETOS: SECCIÓN DE ÁFRICA Y MUNDO ÁRABE DE LA BIBLIOTECA NACIONAL, I (CAJAS 7000 A 7021). By JAVIER GÓMEZ LÓPEZ & others. Madrid, Biblioteca Nacional, 1989. 124pp.

BIBLIOGRAFIA DE LA LITERATURA HISPANO‐ARABE. Compiled by MARIA JESUS RUBIERA MATA. Alicante, Universidad de Alicante, 1988. 75pp. Ptas. 566.‐

ESTUDIOS ONOMÁSTICO‐BIOGRÁFICOS DE AL‐ANDALUS, I. Edited by MANUELA MARlN. Madrid, CSIC, Instituto de Filología, Departamento de Estudio Árabes, 1988. 610,[2]pp.

ESTUDIOS ONOMÁSTICO‐BIOGRÁFICOS DE AL‐ANDALUS, II. Edited by MARlA LUISA ÁVILA. Granada, CSIC, Escuela de Estudios Árabes, 1989. 342,[2]pp.

AL‐ADAB AL‐TÜNISI AL‐MU'ASIR. By JEAN FONTAINE. Tunis, al‐Dar al‐Tūnisiyya li‐1‐Nashr, 1989. 191pp. TD3.200.

ENGLISH‐PERSIAN DICTIONARY OF LEGAL AND COMMERCIAL TERMS. Compiled By K.FAHIM, J. HABIBION and F. VITTOR. Leiden, Brill, 1989. 81pp. Hfl 150.

FLORA OF EASTERN SAUDI ARABIA. By JAMES P. MANDAVILLE. London, Kegan Paul International, in association with the National Commission for Wild Life Conservation and Development, Riyadh, 1990. x, 482pp. 200 colour ills. £95.00.     

Djibouti and Beyond: Japan’s First Post-War Overseas Base and the Recalibration of Risk in Securing Enhanced Military Capabilities

Having passed successive legislation in the past two decades to expand its use of the Japan Self Defense Force (JSDF), Japan has emerged from its post-war ‘pacifist’ shackles to assume a range of security roles that are typically associated with so-called ‘normal nations’. This article addresses how these have been crystallized in the form of an indefinitely-termed overseas base on the Horn of Africa, in Djibouti. Careful examination of pertaining Diet minutes, media discourse and government ministry papers suggests that the risks identified with this facility’s realization and status have been fundamentally recalibrated, allowing its presence and operational diversification to go largely unnoticed and unopposed – both domestically and overseas – despite representing a seemingly radical departure from common sense interpretations of Japan’s antimilitarist constitution.     

Open Societies and Closed Minds

Karl Popper’s equation of the closed society with tribalism is reviewed and modified. The German origins of the anthropological concept of culture and its related ideas of the folk culture and cultural relativism are explored. The vicissitudes of the idea of The Folk and its swing from Right to Left are related to contemporary neo-primitivism. The open society and high culture are defended.