I would really rather that these were actual examples, and not conspiracy theories. We all have our own unsubstantiated ideas about what shadowy no-gooders are doing, but I’d rather hear about things that are actually happening.

  • qaz@lemmy.world
    2·
    11 months ago

    I didn’t know this concept was criticized. I just found a paper from the IMF which says the following:

    … Perhaps surprisingly, only asmall minority of such episodes were followed by sustained acceleration in wages and prices. Instead, inflationand nominal wage growth tended to stabilize, leaving real wage growth broadly unchanged. A decomposition ofwage dynamics using a wage Phillips curve suggests that nominal wage growth normally stabilizes at levelsthat are consistent with observed inflation and labor market tightness. When focusing on episodes that mimicthe recent pattern of falling real wages and tightening labor markets, declining inflation and nominal wage growth increases tended to follow – thus allowing real wages to catch up. We conclude that an acceleration of nominal wages should not necessarily be seen as a sign that a wage-price spiral is taking hold.

    Sollaci, J. a. a. C. B. H. H. H. P. (2022, November 11). Wage-Price Spirals: What is the Historical Evidence? IMF. https://www.imf.org/en/Publications/WP/Issues/2022/11/11/Wage-Price-Spirals-What-is-the-Historical-Evidence-525073