Monday, April 23, 2012

How much can u nip away at wage rate change by pre emting inflation thru reaction to unit labor cost

Track Changes in Unit labor costs versus product prices

Over 30 years how much can you clip the wage share ?

The voodoo here is intense

But if it's wage generated inflation you're really after anyway
Why not
Prices pushed by raw commodity prices or margin improvement
Obviously different mechanisms

Once again firm's product price formation isn't maybe can't be
adequately closed form modeled