Thursday, March 14, 2013

Workers and employers cannot reach real wage bargains

If the lowering of nominal wages creates deflation, the real wage may remain high despite the lower nominal wage. In any case, it not determined exclusively by wage bargaining between employer and employee.

This point, of course, is from Keynes.

No comments:

Post a Comment

Euphemisms II

It's not just abortion where these euphemisms bug me either. I think it is sometimes OK to euthanize your pet, but... you did not "...