"when inflation is high, people tend to ask for higher wages."
That makes consumer price inflation a driver of wage price inflation, not the reverse.
Yes, that is what I said in my initial reaction. It is a multiplier.
(The multiplier can be <1 of course. it doesn't have to be a spiral like in classic cases.)
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"when inflation is high, people tend to ask for higher wages."
That makes consumer price inflation a driver of wage price inflation, not the reverse.
Yes, that is what I said in my initial reaction. It is a multiplier.
(The multiplier can be <1 of course. it doesn't have to be a spiral like in classic cases.)