In this research, cointegration and spectral analysis methods are used to analyze the dynamic relation between wage growth rate and inflation. The results show that there found cointegration on the time series of wage growth rate and inflation and com...
In this research, cointegration and spectral analysis methods are used to analyze the dynamic relation between wage growth rate and inflation. The results show that there found cointegration on the time series of wage growth rate and inflation and common cycle of 3-year. We also consider economic shock started in 1997. While after the economic shock shock both time series are turned out to be highly related, both time series are little related before the economic shock under the 3-year common cycle. The cross-spectral analysis on these time series data shows that after the economic shock the time series move from inflation to wage growth rate with a close negative relationship.