IMF confident that a wage spiral will not unleash despite high inflation

this high rates Simultaneously rising inflation in many countries and labor markets showing signs of strength are fueling fears of an upward spiral in wages leading to an inflationary cycle. International Monetary Fund (IMF) is considered unlikely based on analysis of similar historical events.

In this context, the international organization has argued that there are three factors working together to contain risks, among which the shocks underlying inflation come from outside the labor market, falling real wages help reduce price pressures and central banks are aggressively tightening monetary policy.

Thus, consider this The restrictive measures taken by many central banks recently are “encouraging” and he hopes they will help prevent high inflation from holding onto and drifting off target for too long.

Because inflationary shocks originate outside the labor marketl, the fall in real wages helps curb inflation, and Money Politics hardens more aggressively, The chances of persistent price-wage spirals appear limited,” he concludes.

In this sense, the analysis of historical episodes with characteristics similar to the present “they didn’t tend to be followed by the spiral of wages and prices.”

In fact, the international institution suggests that inflation then tends to decline gradually on average, and nominal wages gradually recovered over several quarters.

Source: Informacion


Please enter your comment!
Please enter your name here


More from author

Putin: Today’s elites in Germany are losing memory of victims of fascism 20:47

Russian President Vladimir Putin said at a meeting with representatives of public patriotic and youth organizations in Volgograd that the memory of the victims...

Where to watch La Nucia vs. Castellón de Primera RFEF 2022-2023: TV channel, platform and live streaming

Castellón wants to regain the lead at the expense of a points problem CF La Nucía.La Nucia He wants to fly and he has...

WhatsApp will let you create shortcuts to call from mobile home screen

Whats up working on its implementation. new feature that allows users to create shortcuts to search...

Former defense minister of Cameroon sentenced to 30 years in prison for embezzling $38m

Former Cameroonian Defense Minister Edgar Alain Mebe Ngoo was sentenced to 30 years in prison by the country's Special Criminal Court on Thursday (February...