Price Stickiness, Illusion, and the Impacts of the Minimum Wage
Posted in labor markets, Price Controls, You Can't Have it Both Ways on Nov 28th, 2016
There is a well-regarded theory in economics (and popular?) that suggests that during slack economic conditions, we should welcome a bit of unexpected inflation from the Fed. Why? Well, for one, if you believe in a sticky wage view of the world, and the psychological and practical difficulties with employers lowering wages to existing workers, […]