2 ms·
I think you’re confusing transitory inflation causes with entrenched inflation causes. I’m definitely not arguing that wages triggered our current bout of infla
by boc 3y ago
I think you’re confusing transitory inflation causes with entrenched inflation causes. I’m definitely not arguing that wages triggered our current bout of inflation. I’m arguing that wage increases are required to sustain and entrench inflation. If you have inflation continuing upwards without any wage reaction, eventually people can’t afford to consume, which curtails inflation (or you ruin your currency ala Turkey). The only way to sustain the rise long term is by increasing wages to match inflation expectations.