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The Honesty of Our Economy with Allison Schrager
What Could Go Right?
Understanding the Disconnect Between Rising Wages and Inflation
There is a disconnect between macroeconomics and financial perspectives when it comes to the relationship between rising wages and inflation. While some argue that rising wages counterbalance inflation, people can still be concerned about inflation despite this. Financial markets operate on the principle that individuals prefer a stable income over a fluctuating one, highlighting the complexity of people's reactions to economic changes.
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