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Inflation is also psychosocial. If people think inflation is happening they will want to be paid more. That’s what can cause a wage-price spiral, partially.
by kaczordon 5y ago
Inflation is also psychosocial. If people think inflation is happening they will want to be paid more. That’s what can cause a wage-price spiral, partially.
- xapata 5y agoWages are prices. A wage is the price of labor. When wages increase, inflation is happening, by definition.
- somebodythere 5y agoThe price of labor can increase faster than the price of goods increases. This is usually what people refer to when they talk about the development of a country's economy, or a country getting "richer".