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Unless I miss something, it's very much not a standard measure of inflation. That said, leaning on that "at all": If wages are stickier than expenses, then th
by dllthomas 2y ago
Unless I miss something, it's very much not a standard measure of inflation. That said, leaning on that "at all": If wages are stickier than expenses, then the gap between wages and expenses will represent recent inflation to some degree.
- eru 2y agoIf inflation is stable (and low-ish), then stickiness doesn't matter. Sticky prices are only important, when expectations are invalidated. So to fix your sentence: > If wages are stickier than expenses, then the gap between wages and expenses will represent recent unexpected inflation to some degree.
- dllthomas 2y agoI think that's probably right, yeah.