A new policy called Stabilizing Wage Policy aims to help the economy recover from recessions by raising base wages and prohibiting changes to them. This policy is proposed as an alternative to deficit-financed public spending. The researchers used a model with different beliefs and inflexible wages to show that raising base wages can reduce unemployment and boost output in a struggling economy. This approach is meant to counter the negative effects of deflationary shocks and help households recover from economic downturns.