now unit labor costs are the real policy impacting " tracked data stream"
at least by the fed's number cruncher elves
of course they are
what is controled is a wage price spiral
avoid circularity here
whether indeed the first move is a price move or a wage move it perpetuates itself
in the absence of sufficient credit flow de - accommodation
interestingly
inquiring public eyes
and even deeper proding ---maybe even sceptical --
cross comparing causal fit operations
using credit policy and the various possible "governing " data streams
even if conducted by independent "researchers"
prolly can't torture out a signifigant difference
in fit
i suspect
the diff is not all that discern able
if we take any core price change numbers however barbered
---and we have a plethora of barber shops clipping out shape charged data streams --
we'll prolly never isolate the unit labor cost data stream
convincingly as THE prime mover of credit flow policy
particularly
if we restrict ourselves to data since say
the on set of post volcker dammerung
ie the great moderation and on thru the fall 08 crisis and
the following contraction and present trap and stag act
given the speed of adjustment on the price side this follows
only when wages stag even as core prices accelerate could we "see" the unit labor cost determination emerge
as motivator from the price clusters
such an event hasn't as yet occured only commodity prices are sufficiently unhinged from
domestic labor costs
perhaps import prices rising and flowing thru the domestic final product price structure
say after relentless changes in forex
could trick out this truth :
its about nominal wage control stupid
