In macroeconomics, a wage–price spiral (or, conversely, a price–wage spiral) is an explanation for inflation, in which wage increases cause price increases, which in turn cause wage increases, in a positive feedback loop. Greg Mankiw writes, "At some point, this spiral of ever-rising wages and prices will slow...
In macroeconomics, a wage–price spiral (or, conversely, a price–wage spiral) is an explanation for inflation, in which wage increases cause price increases, which in turn cause wage increases, in a positive feedback loop. Greg Mankiw writes, "At some point, this spiral of ever-rising wages and prices will slow...
Source: Wikipedia "Wage–price spiral" · CC BY-SA 4.0
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