Inflexible Wages and Prices? Evidence in the Current Recession
William C Dunkelberg,
Jonathan A Scott and
Michael J Chow
Business Economics, 2010, vol. 45, issue 2, 94-101
Abstract:
The 2008/9 recession period brought the most massive and quickest response of fiscal and monetary policy in modern economic history. At the same time, small businesses (that produce half of private GDP) exhibited the most rapid adjustments in wages, prices, and inventories recorded in the past 35 years of data collected by the National Federation of Independent Business. The notion of “sticky” wages and prices plays a key role in arguments favoring government intervention to rebalance supply and demand for labor and output. The faster wages and prices (and therefore employment and output) adjust to a “shock” to the economy, the less the need for government intervention.
Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (1)
Downloads: (external link)
http://www.palgrave-journals.com/be/journal/v45/n2/pdf/be20103a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/be/journal/v45/n2/full/be20103a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:pal:buseco:v:45:y:2010:i:2:p:94-101
Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/11369
Access Statistics for this article
Business Economics is currently edited by Charles Steindel
More articles in Business Economics from Palgrave Macmillan, National Association for Business Economics Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla (sonal.shukla@springer.com) and Springer Nature Abstracting and Indexing (indexing@springernature.com).