Wage-Push Inflation: Its Meaning and Control
Abstract
It is the opinion of the present writer that if the tools of monetary and fiscal policy are refined to reduce time-lags,
and if the attitudes of those administering policy
change, the situation would be much improved. If both
the tools and the attitudes were present to act immediately
upon a wage-push inflation, the goal of both full-employment
and price stability could be achieved. However, without
these modifications, the present "either/or" type of situation
will continue. Price stability will be achieved only at the cost of unemployment and full-employment will be achieved
only at the cost of unstable prices. With modifications in monetary and fiscal policy however, the goal of full-employment with reasonable price stability can be achieved.
20 We will not go into a complete discussion here as to
specifically how they may be refined. One example of a refin
emen tin f i s cal pol icy , however, mig ht be a con gres sf 0 na1 '