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I need someone smarter than me to explain me what happens if all wages are always compensated for inflation. Would that mean no inflation?

• andrewla 5y ago
  No, there could still be inflation or deflation. Those terms refer to price levels denominated in a currency. If wages increase, then the "buying power" of the wages might not change, but the nature of savings and credit can be dramatically affected.
  • jerrre 5y ago
    Thanks