4 ms·
Fed's concern is only the part of inflation that 1) it can change, and 2) is self sustaining. Only that part of inflation that goes trough wages is self sus
by nabla9 4y ago
Fed's concern is only the part of inflation that
1) it can change, and
2) is self sustaining.
Only that part of inflation that goes trough wages is self sustaining for a long term. If wages don't increase, demand decreases when people can't afford to pay.