Sentences with phrase «wage deflation»
The phrase "wage deflation" means a decrease in the amount of money people earn for their work. This can happen when there is a decrease in demand for goods and services, leading to lower prices and employers offering lower wages to workers. It results in a reduction in people's incomes and can have an impact on the overall economy. Full definition
Today electorates seem to be saying end wage deflation via immigration controls, trade protectionism, fiscal spending (Chart 1).
zerohedge.com
Uncertainty shock = lower US GDP estimates; markets will price in EU fragmentation; Fed likely passes Dec; but ultimate global growth impact of Trump will depend on whether protectionism or Keynesianism triumphs; either way inflation / stagflation = destination as policies focus on ending wage deflation via immigration controls, trade protectionism, fiscal spending.
Spain probably needs a comparable adjustment, but that adjustment, if it can happen at all, will require years of grinding wage deflation in the face of high unemployment.
Finally, as I have noted a number of times before, my biggest fear about the next recession is that it leads to actual wage deflation (nominal as well as real):
Generalized price deflation typically follows wage deflation.
Spain's household savings rate fell to its lowest level on record in the third quarter of last year as high unemployment and wage deflation in the latest recession obliged them to devote more of their disposable income to consumption, according to figures released Wednesday by the National Statistics Institute (INE).
Uncertainty shock = lower US GDP estimates; markets will price in EU fragmentation; Fed likely to pass in Dec; ultimate growth impact of Trump will depend on whether his protectionism or Keynesianism triumphs; either way Trump will boost inflation / stagflation expectations as electorates say end wage deflation via immigration controls, trade protectionism, fiscal spending.
US election + BREXIT = populist repudiation of era of inequality, globalization and wage deflation; cements BofAML themes of peak Liquidity, Inequality, Globalization, Main St assets over Wall St.. Last time electorates shifted in this manner was 1980 when electorate said «end inflation.»
US election + BREXIT = populist repudiation of era of inequality, globalization, wage deflation; cements BofAML themes of peak Liquidity, Inequality, Globalization + Main St over Wall St. Electoral trends could mark secular low in long - term bond yields (Chart 1).
Wage deflation is to go hand in hand with debt deflation and tax increases to shrink the economy.
Until such a switch to a sinking currency occurred, Greece was to follow Baltic and Irish policy of «internal devaluation,» that is, wage deflation and government spending cutbacks (except for payments to the financial sector) to lower employment and hence wage levels.