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Does Quote by Ben Bernanke

“To be sure, faster growth in nominal labor compensation does not necessarily portend higher inflation.” quote by Ben Bernanke
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“To be sure, faster growth in nominal labor compensation does not necessarily portend higher inflation.”

Ben Bernanke

About This Quote

Source Speech: Remarks at Economic Symposium, Federal Reserve Bank of Chicago, 2015

Higher wages can boost demand but don't always translate into rising prices; inflation depends on many factors.

In simple terms: Higher wages don’t always cause inflation.

Key Takeaway

Don’t assume wage growth equals inflation.

Themes

economics inflation labor markets

Mood

analytical cautious

Type

economic policy

When to use this quote

  • policy analysis
  • business planning
  • budget forecasting

Key Concepts

monetary policy wage dynamics price stability

Questions to Reflect On

  • How do productivity gains affect inflation?
  • When might wage growth lead to higher prices?
A Different Perspective

Wage growth may be offset by productivity gains or weak demand.

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