wage-price spiral

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Wage-Price Spiral

The phenomenon in which prices for goods and services rise, which causes employees to demand higher wages. This added expense on business causes higher prices, which leads to still higher wages, and so forth. The wage-price spiral is alternately described as a cause or a symptom of inflation, depending on one's economic philosophy.

wage-price spiral

see INFLATIONARY SPIRAL.
References in periodicals archive ?
But in the developing world, these wage-price spirals could turn very nasty, and policymakers there often seem reluctant to deal with the underlying causes.
Clearly, high inflation is hurting local enterprises in the form of high input costs, while the overall cost of living has zoomed, triggering wage-price spirals.
European economies, however, have stronger unions and institutional arrangements that may cause them to be more prone to wage-price spirals.
The greater importance attached to price stability as a goal of monetary policy implies that oil-induced wage-price spirals are not being validated or encouraged by an accommodative policy stance.