wage-price spirals

Feature image for “Wage-Price Spirals,” comparing the 1970s inflation spiral with the 2022 inflation episode and showing why expectations remained anchored in 2022.

Inflation

Wage-Price Spirals: Theory, Evidence, 1970s vs 2022

Wage-price spirals require wage indexation, weak monetary anchors, and unanchored expectations. The 1970s satisfied all three; 2022 did not. The...

May 28, 2026