Wage-price spiral,
Definition of Wage-price spiral:
Alternative term for inflationary spiral.
The wage-price spiral is an economic term that describes the phenomenon of price increases as a result of higher wages. When workers receive a wage hike, they demand more goods and services and this, in turn, causes prices to rise. The wage increase effectively increases general business expenses that are passed on to the consumer in the form of higher prices. It is essentially a perpetual loop or cycle of consistent price increases. The wage-price spiral reflects the causes and consequences of inflation, and it is, therefore, characteristic of Keynesian economic theory. It is also known as the "cost-push" origin of inflation. Another cause of inflation is known as "demand-pull" inflation, which monetary theorists believe originates with the money supply.
The wage-price spiral is a macroeconomic theory used to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. The wage-price spiral suggests that rising wages increase disposable income raising the demand for goods and causing prices to rise. Rising prices increase demand for higher wages, which leads to higher production costs and further upward pressure on prices creating a conceptual spiral.
How to use Wage-price spiral in a sentence?
- Central banks use monetary, the interest rate, reserve requirements, or open market operations, to curb the wage-price spiral.
- Inflation targeting is a type of monetary policy that aims to achieve and sustain a set interest rate over a period.
- The Wage-price spiral describes a perpetual cycle whereby rising wages create rising prices and vice versa.
Meaning of Wage-price spiral & Wage-price spiral Definition
Wage-Price Spiral,
What is The Meaning of Wage-Price Spiral?
A simple definition of Wage-Price Spiral is: Marcus Reeves is a writer, editor and journalist. Articles on business and pop culture have appeared in several major publications, including the New York Times, The Washington Post, Rolling Stone, and the San Francisco Chronicle. He is an assistant professor of writing at New York University.
- The wage spiral describes a perpetual period in which higher wages lead to higher wages and vice versa.
- Central banks use monetary policy, interest rates, reserve requirements or open market operations to stem the rise in wages.
- Targeted inflation is a type of monetary policy aimed at maintaining a fixed interest rate for a fixed period of time.
Literal Meanings of Wage-Price Spiral
Wage:
Meanings of Wage:
Continue (fight or campaign).
Sentences of Wage
We need to eliminate your ability to fight.
Synonyms of Wage
income, reimbursement, carry on, earnings, reward, fee, salary, practise, profit, emolument, proceed with, proceeds, go on with, revenue, remuneration, prosecute, honorarium, undertake, stipend, conduct, yield, engage in
Price:
Meanings of Price:
An amount of money that is expected, needed, or given as a payment for something.
Unwanted experience or action encountered or performed as a condition of achieving a goal.
Decide on the amount you need to pay (something to sell).
Synonyms of Price
deprivation, sum, put a price on, worth, evaluate, payment, value, appraise, expenditure, levy, amount, worry, assay, affliction, consequence, quotation, charge, toll, suffering, asking price, assess
Spiral:
Meanings of Spiral:
It moves along a continuous curve and gradually widens (or narrows), taking the shape of a cone, either around the center or around the axis of a flat plane.
Spiral curve, shape, pattern or object.
The gradual increase or decrease in prices, wages, etc., responds to the upward or downward response provided by each precedent.
Move in a spiral.
Shows continuous and dramatic improvement.
Sentences of Spiral
Spiral pattern
Smoke spiral
Inflation spiral
A piece of smoke rising from the trees
Inflation continues to rise.
Synonyms of Spiral
go through the ceiling, rocket, snake, go through the roof, wreathe, helix, curlicue, swirl, gyre, scroll, escalate, curl, increase rapidly, climb, rise rapidly, convolution, whorl, shoot up, coil, soar, corkscrew, gyrate, mount, leap up, twist, volution, twirl, wind, skyrocket
