I'm not sure the mechanism works as simply as you describe. Money is still cheap, so employers can hold out while waiting for conditions to return to normal, wh

I'm not sure the mechanism works as simply as you describe. Money is still cheap, so employers can hold out while waiting for conditions to return to normal, whereas employees generally don't have that option. It's not at all clear that the game simply resolves to employers paying more, locally or on average. Prices can be sticky in more than one way it seems, and that might make for some interesting economics.