Wages and Inflation
I shall not go into the logical relationship of wage rates to the other variables in the system of a market economy. This relationship has often been analysed, and I do not think it contains any important controversial point. Rather than repeat what is well known and uncontroversial I intend to discuss some practical questions concerning wages and the control of the monetary system. Before doing this, however, I shall, by way of summary, state the assumptions on which the subsequent reasoning is based ; for brevity only a rise in wages is considered.
KeywordsInterest Rate Wage Rate Fiscal Policy Trade Union Real Income
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- 1.Cf. Jørgen Pedersen, ‘Forholdet mellen Renten af Laan med kort og lang lobetid’, ѱkonomi og Politik, årgang 1930, pp. 268 ff.Google Scholar
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