Inflation drives wages not vice versa
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Inflation drives wages not vice versa
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Re: Inflation drives wages not vice versa
#2" ... results show that, between 1980 and 2019, the pass-through from prices to wages was substantial. At the same time, nominal wage increases only had a modest effect on prices. Other factors—such as imported inflation, inflation expectations and economic slack—clearly dominate wages in explaining price movements ..."