> To date, this process includes a wage increase in the form of a "raise". In an era of full employment, periodic raises push costs up Not inherently, I don't

> To date, this process includes a wage increase in the form of a "raise". In an era of full employment, periodic raises push costs up Not inherently, I don't think. If every employee started on $10 and got a $1 raise every year until they retired, and there was a 1:1 ratio of joiners to retirers, there's no overall inflation. Individuals' wages might rise over time, but the average wage doesn't have to. > Most central bankers will use all their tools (in the form of monetary fiscal policy) to prevent long-term deflation. Empirically, central bankers respond to a bursting asset bubble by blowing a bigger asset bubble. Dotcom bubble crashes, blow a housing bubble. Housing bubble crashes, blow an everything bubble.