Saturday, November 20, 2010

Sticky Unstuck

I've written more than once about the capacity of inflation to unstick sticky wages, and how that may have been one reason Keynes thought inflation might not be a bad thing.   So I open my morning email and find my friend John saying "here are your sticky wages"--with a link to this morning's New York Times:

Unions Yield on Wage Scales to Preserve Jobs

Yep, didn't always happen that way, did it?  Although on reflection, I guess it isn't it brand new.  When was it that the commercial pilots caved to two-tier pricing?  End of the Bush years?  Or earlier?


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