The Labour market

One of the more interesting developments was how deregulation has changed the labour market. Political partisans could not see it so kept on saying how a wages breakout was near , strikes were on the way up etc.
In fact the opposite occurred. Did Katesy, Sloan or Gerard Henderson ever admit to being wrong on this topic. Indeed badly wrong. No siree.

Our mate the inimitable Ricardian Ambivalence has two great articles on this topic.
They are:

• slowest-ever-wages
• das-lowe-flation

Are we trapped in an era of low inflation because of a labour market where employers have far too much power ?  It almost makes one want to become a marxist. Almost