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Politics : Ask Michael Burke
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To: Broken_Clock who wrote (112076)3/11/2008 2:52:15 PM
From: TimF  Read Replies (1) of 132070
 
What exactly is "a deflationary wage cycle".

Nominal wages have been increasing. Real total compensation has been increasing. The money supply hasn't been dropping. Inflation has been creeping up. Where is the deflation?

I suppose you could look to the drop in the housing market, but

1 - I wouldn't call every drop in prices of a certain class of assets "deflation".

2 - Housing prices aren't wages.
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