The Interaction Of Structural Changes With Inflation in the Presence of Symetric and Asymetric Economic Behaviours – Evidence from a General Dynamic Intersectoral Model

The paper analyzes the structural changes-price changes binomial in passing from symmetric to asymmetric economic behaviors. The results are in line with the ones obtained in Dobrescu (2009) indicating that the structural production impulse has a higher impact on inflation than the inflational impulse on the sectorial production structure. The introduction of a behavior change, namely asymmetric wage formation mechanisms at the sectorial level indicate how the elimination of the connection between wages and profits in one of the sectors, leads to changes in the relations between output and prices and in the causal mechanism of output and price formation. Consequantly a change in one behavior carries with it an entire array of modifications due to the spread of the behavior change through the network of interdependencies.