3 ms·
Cutting real wages is in no way the intended desirable effect of inflation. Inflation is a disincentive to sittin on imaginary cash, am incentive to productive
by judk 13y ago
Cutting real wages is in no way the intended desirable effect of inflation. Inflation is a disincentive to sittin on imaginary cash, am incentive to productive activity/investment.
In an inflationary stimulus theory, wages rise with inflation, and cash-rich spend cash to move a worker to produce.