Cherry-Picker's Delight: A Primer on Real Wages
More problems with "Real Wages"
Macro and Markets
157 posts
The Biden Administration Has The Power: Administrative Authority To Address The Crisis in Oil Supply Right Now
Energy security has taken on new importance in wake of Russia’s invasion of Ukraine. We can use existing tools to confront these challenges without sacrificing our climate goals.
What Are You Expecting? How The Fed Slows Down Inflation Through The Labor Market
Conventional wisdom has held that rate hikes slow inflation long enough that straightforward accounts of how exactly one turns into the other are hard to find. Today, everyone needs to be on the same page about how exactly it is that Fed policy in particular can slow inflation.
"Real Wages" and Aggregation: A Methodological Mess
“Real wages” are often presented as a neutral measure of the ability of households to buy definite quantities of real goods after adjusting for changes in both prices and wages. In reality, "real wages" explain far less about household economic well-being than these stories confidently imply.
The "Inflation Management" Approach to Policy
It means that the White House and Congress should, where feasible, use targeted fiscal policies and structural reforms to equitably address the demand- and supply-side challenges that contribute to inflationary pressure.
