Economics, Econometrics and Finance
8 years ago

Wage growth found to have minimal impact on inflation in the US.

The American Economist
Wage Growth and Inflation in the United States: Further Evidence from Johansen's Cointegration Approach
Victor Ukpolo

Paper Summary

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The study looked at how wage growth affects inflation in the United States. By using a special method called Johansen's Cointegration Approach, the researchers found that while wage growth does have some impact on inflation in the long run, it is not a major factor in determining inflation.