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Ok, you are pushing your definitions into unreasonable territory.

A central bank saying inflation is caused by high wages is exactly the same as the government telling people they should get a lower wage. There is no practical difference.

It is in fact worse, because the central bank tends to act on that phrase. So the government not only tells people they should earn less, but forces their hands into that.




Right, but the central bank knows that IT is the one forcing the lower wages. They're not standing up there asking employees to shred part of their paycheck, because that is obviously dumb. The original person was talking about what workers should do "out of the goodness of their own heart." But no central bank is asking workers to take action, they are forcing workers' hands, explicitly.

You may think that is better or worse, but it is not appealing directly to workers to throw away their pay check.


Central banks can only affect interest rates. And they will take the same action whether prices are rising due to wages or profits.




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