Like Phillips, Samuelson and Solow looked at sub-samples, noting that money wages
rose or failed to fall during the high unemployment era of 1933 to 1941, which they suggested might be due to the workings of the New Deal.
W Phillips (1958) analyzed the relationship between money wages
and unemployment in the United Kingdom between 1961 and 1957.
To sum up: The completed theory of activity that incorporates the above modeling of natural unemployment into the 1960s modeling says that employment increases in either or both of two ways: Increased effective demand lifts employment off its present equilibrium path and actual money wages
climb above their expected path.
Keynes always understood that unemployment was a result of real wages that were too high, but he simply assumed that money wages
could not be reduced because of unions and other causes of wage "rigidities.
Our 1996 paper described the effects of inflation due to a shock, S, to real wages resulting from money wage
The accelerationist property begins to break down as the average rate of money wage
change approaches zero.
The second part is institutional and is divided into two sections: Chapter III on money wages
and non-wage benefits and Chapters XI and XII describe wage administration.
Stated explicitly, and gathering credibility, the target has provided wage negotiators with a firmer basis than they had had formerly from which to estimate the size of the claims they should make for money wage
increases when these were intended to deliver a given improvement in real wages.
This new demand in the labor market should raise money wages
, raise employment, reduce production, and then raise prices.
In order to protect themselves against what was incorrectly perceived to be nearly double digit inflation, workers demanded (and got) large money wage
increases in 1981 and into 1982.
where E denotes employment, W represents the money wage
level, O indicates a measure of the productivity per unit of labor, and P signifies the general level of prices.
He further pointed out that, in the context of an expanding population, mechanization, far from occurring autonomously, is often induced by rising money wage
rates relative to the cost of machines.