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Inflation drives wages not vice versa

link.springer.com

2 points by marbex7 2 months ago · 1 comment

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marbex7OP 2 months 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 ..."

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