wage and price controls

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wage and price controls,

economic policy measure in which the government places a ceiling on wages and prices to curb inflation. Also known as incomes policy, such programs have generally been avoided in the United States during peacetime. Brief but strict wage and price controls were imposed during World War II and the Korean War, as well as more limited ones in the 1960s. America's most controversial peacetime experiment with an incomes policy was during the period 1971–74, when inflation was fueled by the costs of the Vietnam War, the 1973 oil embargo, and the later quadrupling in the world price of oil by the Organization of Petroleum Exporting Countries (OPEC). Wage and price controls during peacetime have yielded minor gains at best in the United States; in postwar Western Europe, incomes policies have been more frequently used. Britain, the Netherlands, Sweden, and Germany have all implemented controls at various times and France has experimented with wage and price controls many times since the 19th cent.
References in periodicals archive ?
This view holds that, in the absence of a totally planned economy, the incomes policy can never work, because the excess money in the economy will greatly distort areas which the incomes policy does not cover (Belke and Polleit, 2010).
(1981), 'Incomes Policy: An Employer Perspective', in Hancock, Keith (ed.), Incomes Policy in Australia, Harcourt Brace Jovanovich, Sydney, pp.
Remaining the foundational retirement incomes policy, the Age Pension's coverage extended over the next 70 years as life expectancy increased and policy was gradually liberalised.
It was called a Prices& Incomes Policy, but the prices bit didn't work.
At the same time, a broad-based incomes policy is essential to ensure the equity of the adjustment process and to avert the risk of a wage-price spiral.
This forward-looking and pro-active attitude to inflation control represents a vital shift from the previous more accommodating approach and has been backed by a prices and incomes policy whereby increases in civil servants' salaries and the minimum wage, together with agricultural support prices and rents, will be based on projected rather than past inflation.
The current macroeconomic policy framework, the so-called Solidarity Alternative, has three pillars: i) monetary policy, which aims at maintaining a stable exchange rate against the European currencies (the euro since 1999); ii) fiscal policy, which aims at stabilising the economy, with budget surpluses generated by the government's petroleum revenues reinvested in financial assets abroad; and iii) incomes policy, i.e.
The author first describes the restrictive wage policies of the first years of reforms, including wage control through a tax-based incomes policy; minimum wage regulations and a rigid system of wade tariffs aimed at controlling the growth of wages above tariff rates; wage indexation with price liberalization; and limitations in the scope of the emerging wage bargaining system.
Sweden wanted the increase to be backed up with an extra contribution to the pension scheme (the future of which is under debate) and Denmark thought the rise was somewhat excessive in the light of its own incomes policy objectives.
This rather unusual assignment, control of inflation through the exchange rate and maintenance of international competitiveness by incomes policy, has probably only been possible owing to the corporatist institutional setting and the high degree of social consensus on which the Austrian social partnership is based.
He does reveal that Nixon officials had no idea how long or what form the incomes policy would take after the initial 90 day freeze.
This results from the Development Plan for Education and University Research adopted in December 1995, and from the use of labour market training programmes which were extended as part of the 1995 incomes policy agreement.