Wage Growth and Inflation – International Point of View

• 9 June 2023
• Gleb
• International Macroeconomics, Labor, Macroeconomics

Wage growth is too high across DW countries to durably bring down inflation. In credit cycles wages lag everything, but in inflationary income-driven cycles, wage growth is coincident by maintaining spending and inflation. Recent Atlanta Fed data confirms elevated US wage growth. Wage growth has to be put in the context of overall productivity to...