Wage-Price Spiral
Definition
Workers demand higher wages to keep up with inflation; firms raise prices to cover wages; loop continues. Largely absent in recent decades.
Example
1970s economies showed strong wage-price spirals; 2020s much less so.
Workers demand higher wages to keep up with inflation; firms raise prices to cover wages; loop continues. Largely absent in recent decades.
1970s economies showed strong wage-price spirals; 2020s much less so.