The Fed and Wage Stagnation

Rortybomb submits:

From the Federal Open Market Committee Transcript, February 1990:

Chairman Greenspan: ?You realize that the labor unions would say that was awful: you say it?s wonderful.?

Mr. Syron: ?That?s right, but we are not in an AFL-CIO meeting. And they have a little different view than we do on what is considered wage inflation.?

Matt Yglesias writes about progressives needing to engage the Federal Reserve in the latest issue of Democracy Journal. I agree with the article completely; now is the time for new thinking about this topic.

Here?s a question I?ve been trying to find research on lately ? how much is the post-Volcker era of monetary policy responsible for stagnating wages and high-end inequality? I?m pretty familiar with the stories and arguments surrounding these two topics, and the Federal Reserve never shows up. It?s almost like taking an American phone charger overseas; there?s no place for monetary policy

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