Monday, March 18, 2013

Planet Earth is Wage-Led!

 Özlem Onaran takes us through an analysis of the effect of a decline in the wage share in GDP. The author asserts that when wage moderation and austerity measures are being formulated, it is important to realise that wages not only affect costs on one side but also affect demand on the other. According to Onaran through its effect on aggregate demand, a wage-led recovery is economically feasible as a way out of the global recession.

Book: p. 61 and 106.

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