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Wage Stabilization

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Wage Stabilization
During a period of high inflation, the system of policies a government uses to prevent wages from increasing. A government may adopt a wage freeze, in which it simply forbids wage and salary increases. Because this does not attack underlying inflation, the most effective method of wage stabilization is to reduce currency in circulation, specifically by raising key interest rates.
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23) In fact, I do not think that either Friedman or Taylor failed to recognize that wage stickiness in principle made wage stabilization a desirable objective.
Friedman and Taylor on monetary policy rules: a comparison by Nelson, Edward / Federal Reserve Bank of St. Louis Review
Inspectors of the Wage and Hour Division were assigned to explain, investigate, and enforce the wage stabilization program.
The Quest for a Living Wage: The History of the Federal Minimum Wage ... by Ayres, Mary Ellen / Monthly Labor Review
Establishment of regional offices With the onset of World War II, the vast data needs generated by price controls and the wage stabilization effort led to the establishment of BLS regional offices to advise and assist regional War Labor Boards.
BLS regional offices: contribution to wage programs by Paisner, Alan M. / Monthly Labor Review
 
 
 
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