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 basic conditions for a successful inflation targeting strategy are not very different from those that were needed to support the currency peg: an incomes policy to counteract domestic inflation inertia and fiscal consolidation, made credible by structural reforms, to maintain capital inflows.
He also argues that the tax-based incomes policy has been ill-advised, as has been the use of the statutory minimum wage as a crude means of limiting social expenditure, and thus as an indirect mechanism for reducing government budget deficits.
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.
Nonetheless, wage increases - at less then 3 1/4 per cent in 1996 - have remained moderate following the two-year incomes policy agreement concluded in late 1995 (to expire in January 1998) and continued modest wage drift.
For example, his anti-inflation elixir was, more often than not, predicated on some form of an incomes policy.
After explaining the five different approaches to industrial relations (system, unitary, pluralist, Marxist and corporatist), they have added the incomes policy approach which hypothesizes a well coordinated set of behaviour among the three actors.
With reference to the complex question of incomes policy, it emphasizes the risk of relying on "theories without institutions" or on "theories with imaginary institutions" in order to identify concrete measures of economic policy.