"Franco M' constructed a macro model with 2 different equations for wages
. One union & one non union.
The union was vertical Phiilips curve:
price increases :
union workers got full compensation
Non-union didn't get full compensation
and took the real loss from the price of an import price rise
. In fact more than took the shock because unions caused more inflation
--- ie core inflation--
that the non unions didn't get compensated for"
