The Anti Inflation Guidelines PDF Download

From the Summary: One of the key elements in the anti-inflation program in Canada that has not received adequate public attention is the link between wages and productivity. Under the wage guidelines, workers are compensated fully for the impact of inflation and also share in the benefits from increases in the national productivity performance. The productivity factor in the guidelines is 2 percent, the average incease in GNP per person employed over the past twenty years. That there should be a link between wages and productivity is recognized as an essential element of policies to promote greater price stability. However,...an examination of several problems with the application of this concept suggests that the specific productivity guideline adopted in Canada may not be consistent with the goal of price stability in the long run.