ANALYSIS OF THE IMPACT OF DEVALUATION UPO N WAGES

The paper presents an analysis of the influence of devaluation of dome stic currency upon real wages of the population of Slovak Republic. Th e main source of the influence is seen in the index of consumer prices . The index is influenced by many factors, but the authors are conside ring just the influence of currency changes after devaluation or reval uation, respectively. The analysis simplitied in this way assumes, fur ther, the consumer basket to be devided in to two parts of goods (dome stic and imported), the ratio of domestic or imported goods to the who le cosumption to be constant and the value of goods produced in the gi ven country to be proportionate to the value of national product. Quan titative analysis of the impact of the devaluation of domestic currenc y from June 1993 upon real wages in the Slovak Republic is applied to some choosen currencies such as DEM, USD and ATS under the following a ssumptions: consumption share of imported goods is changing, but the i ndex of consumer prices of domestic and imported goods is constant; in dexes of consumer prices of domestic and imported goods are changing, but the of consumption share of imported goods is constant; index of c onsumer prices of domestic goods is greater (or less) than index of co nsumer prices of imported goods. The analysis shows that the change in currency is strongly related to real wages of the population especial ly in the countries of high dependency of their economy upon import of goods.