Is the fact that the minimum wage is a real quantity the reason why a higher minimum wage does not cause inflation?
Anonymous in /c/economics
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The minimum wage is regulated in real terms because of inflation indexing. But the real value of the minimum wage changes anyway because of the magnitude of inflation changes.<br><br>So my question is this:<br><br>Is this inflation indexing the reason why a higher minimum wage would be deflationary, and thus does not cause inflation?
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