Wage contract negotiations often sparked by high inflation: NY Fed paper


The realisation of large inflation forecast errors increases the likelihood that a wage labour contract will be renegotiated, according to a New York Federal Reserve paper, published on Thursday.

Robert Rich and Joseph Tracy, the paper's authors, examine US labour contracts between 1970 and 1995 to investigate whether unanticipated changes in inflation increased the likelihood of a contract being renegotiated prior to its expiration. While existing empirical studies have focused exclusively on

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

If you already have an account, please sign in here.

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account