Inflation drives wages not vice versa

(link.springer.com)

1 points | by marbex7 4 hours ago ago

1 comments

  • marbex7 4 hours ago

    " ... results show that, between 1980 and 2019, the pass-through from prices to wages was substantial. At the same time, nominal wage increases only had a modest effect on prices. Other factors—such as imported inflation, inflation expectations and economic slack—clearly dominate wages in explaining price movements ..."