The control of wages and the value of money: the Dutch experience ...

During the era of the gold standard, control of the wage-level and thereby of the purchasing power of money, was affected by the discipline imposed by the Central Bank on the labour market organisations. Once the gold standard was abolished and since governments accepted the obligation to establish and obtain full employment, this mechanism of control could function no longer. Yet inflation can arise even when there is considerable unemployment, if for example excess demand exists in some markets. The article discusses in particular the Dutch scheme of wage-control by the government as a means... Mehr ...