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Wages and Inflation—A Macroeconomic Analysis

In: Wage Control and Inflation in the Soviet Bloc Countries

Author

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  • Jan Adam

Abstract

This chapter is concerned with the macroeconomic role of wage inflation in the countries under review. In view of the general definition of inflation, wage inflation is to be understood as inflation (open and repressed) caused by excessive growth of the global wage-fund in relation to the rate of increase in the volume of goods and services on which the increment in wages is to be spent. The objective of this chapter therefore is to examine the contribution of wage growth to the generation of shortages of consumer goods and services and thus to open and/or repressed inflation.

Suggested Citation

  • Jan Adam, 1979. "Wages and Inflation—A Macroeconomic Analysis," Palgrave Macmillan Books, in: Wage Control and Inflation in the Soviet Bloc Countries, chapter 2, pages 33-53, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-04892-2_2
    DOI: 10.1007/978-1-349-04892-2_2
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