{"version":1,"type":"rich","provider_name":"Libsyn","provider_url":"https:\/\/www.libsyn.com","height":90,"width":600,"title":"How worried should we be about wage-price spirals?","description":"Economists have long debated the potential for rising wages and prices to push each other increasingly higher, driving inflation out of control\u2014the so-called \u201cwage-price spiral.\u201d Concern about such a spiral has been high in the post-pandemic era, with inflation still running notably higher than the Federal Reserve\u2019s 2% target. On this episode of the Brookings Podcast on Economic Activity, Martin Neil Baily of Brookings talks with the authors of a new BPEA paper on wage-price spirals, Guido Lorenzoni and Iv\u00e1n Werning. Their study, which developed a new model for this economic scenario, contends that because various factors drove price growth to outpace wages just after the pandemic, wages can increase faster than inflation, at least for a time, without necessarily spinning the economy out of control. Show notes and transcript The Brookings Podcast on Economic Activity is part of the Brookings Podcast Network. Subscribe and listen on Apple, Spotify, or wherever you listen to podcasts. Send feedback email to podcasts@brookings.edu. ","author_name":"Brookings Podcast on Economic Activity","author_url":"https:\/\/www.brookings.edu\/BPEA","html":"