I liked the paper on why workers dislike inflation in the latest issue of Econometrica.
We know from surveys that households usually associate inflation with something bad. 1/
Sep 24, 2026 ยท 12:31 PM UTC
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The paper argues that this could be because even if real wages do not fall, workers need to negotiate increasing nominal wages which generates strong disutilities.
The paper estimates these to be worth 1.75% of workers' wage.
Link to the paper: onlinelibrary.wiley.com/doi/โฆ 2/2
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