Yellen a revolutionary Fed chair. She wants labor to get a fairer share of the fruits of the economy’s productivity

Yellen a revolutionary Fed chair. She wants labor to get a fairer share of the fruits of the economy’s productivity
She is forcing the financial markets to rethink assumptions that have dominated economic thinking,arguing that fast-rising wages, viewed for decades as an inflationary red flag and a reason to hike rates, should instead be welcomed, at least for now

Pattern of subdued real wage gains suggests that nominal compensation could rise more quickly without exerting any meaningful upward pressure on inflation

In fact, real wages have been rising less rapidly than productivity growth and what we’ve seen is a shift in the distribution of national income away from labor and toward capital

 

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