Template-Type: ReDIF-Article 1.0
Author-Name: Dóra Bak
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: bakd@mnb.hu

Author-Name: Lajos Tamás Szabó
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: szabolaj@mnb.hu



Title: Labour Market

Abstract: Monitoring labour market variables is of the utmost importance for inflation
targeting monetary policy. On the one hand, an increase in the wage bill – as
the product of the number of private sector employees and average earnings
– may be incorporated into the prices of products and services through the
rising costs of corporations, resulting in cost-push inflationary pressure.
On the other hand, as the product of the whole economy labour force and
average earnings, the wage bill may lead to demand-pull inflationary
pressure through an increase in household incomes.

Keywords: Labour Market

Journal: MNB Handbooks
Pages: 42
Volume: 1
Issue: 6
Year: 2016
File-URL: https://www.mnb.hu/letoltes/mnb-oktatasi-fuzetek-6-eng-labour-market.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:handbk:v:1:y:2016:i:6:p:42