Wage Flexibility and Openness
在浮动汇率的两部门经济中推导最优工资指数化，发现经济越封闭，工资指数化程度越低，产出波动越小；意外货币冲击在更开放经济中产出影响更小，而实际冲击在更封闭经济中产出影响更小。
This paper analyzes the degree of short-run, real wage flexibility in a two-sector economy under floating rates. This is done by deriving optimal wage indexation in a contracting framework. We find that the more closed the economy, the lower the degree of wage indexation. As a result, output will fluctuate less around its desired level in a more closed economy. These findings further imply that a given unexpected monetary shock will cause as maller output shock in a more open economy, whereas a given real shock will induce a smaller output shock in a more closed economy.