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 ?
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.
The employers in Finland pulled out of the national incomes policy agreement last year and has sought changes from the union including eliminating Christmas and mid-summer shutdown days, greater flexibility, unlimited outsourcing and sick leave cuts.
Fighting the second of these campaigns on the need for a prices and incomes policy to check runaway inflation, Stanfield was widely derided, only for his policy to be introduced by the cunning Trudeau.
Instead, we must rely on the other policy instruments available to us, including incomes policy.
But then, many of us never did believe the NAIRU to be a natural constant: We used to hope it could be changed by incomes policy.
A tax-based incomes policy (TIP) such as that discussed in Jackman and Layard (1990) would have the same effects as a maximum-wage law.
The only effective answer, in his opinion, lay in some form of incomes policy.
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.
To achieve these goals, the program is centered on a substantial up-front fiscal adjustment, supported by a tight monetary policy, and an incomes policy designed to dampen inflationary pressures.
For example, his anti-inflation elixir was, more often than not, predicated on some form of an incomes policy.