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The rate of growth of wage rate as a function of unemployment rate

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Cybernetics and Systems Analysis Aims and scope

Abstract

The rate of growth of wage rate is proportional to inflation and is an increasing function of unemployment rate. The unemployment rate growth increases inflation. The retention of a high inflation rate from year to year with a high unemployment rate leads to stagflation caused by a redundant amount of money in annual circulation and to the wage growth beyond the equilibrium wage.

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Authors and Affiliations

  1. Technical Center of the National Academy of Sciences of Ukraine, Kyiv, Ukraine

    B. B. Dunaev

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  1. B. B. Dunaev
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Correspondence to B. B. Dunaev.

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Translated from Kibernetika i Sistemnyi Analiz, No. 5, pp. 140–149, September–October 2011.

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Dunaev, B.B. The rate of growth of wage rate as a function of unemployment rate. Cybern Syst Anal 47, 791–799 (2011). https://doi.org/10.1007/s10559-011-9358-7

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  • DOI: https://doi.org/10.1007/s10559-011-9358-7

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