4 ms·
Prices of goods usually adjust quicker than salaries
by elchudi2 11y ago
Prices of goods usually adjust quicker than salaries
- eru 11y agoDo we have statistics on that?
- dnautics 11y agoit's pretty much true all the time, except notably in the US during the 50-60s when we had wage led inflation. moreover, having wage increases lag price increases is a part of the policy reason for having state-driven inflation, in the name of employment. http://krugman.blogs.nytimes.com/2010/02/13/the-case-for-higher-inflation/?_r=0 http://krugman.blogs.nytimes.com/2010/02/13/the-case-for-hig... "Yet when you have very low inflation, getting relative wages right would require that a significant number of workers take wage cuts. So having a somewhat higher inflation rate would lead to lower unemployment, not just temporarily, but on a sustained basis."