Abstract: Empirical data show that real wages fall sharply during periods of high inflation. This paper suggests a simple general equilibrium explanation, without relying on nominal rigidities. It ...

In May 2023, real wages began to rise again as nominal wage growth outpaced inflation ... in nominal and real wages as well ...

That marked the 14th consecutive month that real wages have fallen. Nominal wages rose in May ... a 3.6 percent increase year on year. The consumer price index, which is used to calculate ...