Abstract: Empirical data show that real wages fall sharply during periods of high inflation. This paper suggests a simple general equilibrium explanation, without relying on nominal rigidities. It ...

Most workers would effectively be getting a real wage cut each year as inflation cuts into the purchasing power of their nominal wages ... defines the Consumer Price Index (CPI) as “a measure ...

Shortly after Biden took office in January 2021, inflation began to surge. The Covid-19 pandemic and the supply-chain crisis ...

Real wages are expected to ... compared to the negative global wage growth, of -0.9 per cent, observed in 2022, a period when high inflation rates outpaced nominal wage growth," it noted.