The control of wages and the value of money: the Dutch experience

Authors

  • J. PEDERSEN

DOI:

https://doi.org/10.13133/2037-3643/11941

Keywords:

Monetary policy, control, wage-level, purchasing power of money, Central Bank, inflation, Dutch scheme, Dutch experience

Abstract

During the era of the gold standard, control of the wage-level and thereby of the purchasing power of money, was affected by the discipline imposed by the Central Bank on the labour market organisations. Once the gold standard was abolished and since governments accepted the obligation to establish and obtain full employment, this mechanism of control could function no longer. Yet inflation can arise even when there is considerable unemployment, if for example excess demand exists in some markets. The article discusses in particular the Dutch scheme of wage-control by the government as a means to control such inflation. The author considers the effectiveness and sustainability of the system, as well as its impact on trade unions.


JEL: E24, E31, E52, E58, E65


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Published

2014-03-27

How to Cite

PEDERSEN, J. (2014). The control of wages and the value of money: the Dutch experience. PSL Quarterly Review, 10(40). https://doi.org/10.13133/2037-3643/11941

Issue

Vol. 10 No. 40 (1957)

Section

Editorial

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