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Federal Reserve Bank of Cleveland
Policy Discussion Papers
Does wage inflation cause price inflation?
Gregory D. Hess
Mark E. Schweitzer
Abstract

Is there any evidence to support the assumption that increased wages cause inflation? This study updates and expands earlier research into this question and finds little support for the view that higher wages cause higher prices. On the contrary, more evidence is found for higher prices leading to wage growth.


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Gregory D. Hess & Mark E. Schweitzer, "Does wage inflation cause price inflation?" , Federal Reserve Bank of Cleveland, Policy Discussion Papers, issue Apr, 2000.
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Keywords: Inflation (Finance) ; Wages ; Prices
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