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Echoes of the Wage-Price Spiral of the 1970s
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wsj.comThe U.S. economy started 2022 by sending a disturbing signal from the past: Consumer prices and household paychecks soared in lockstep, conjuring memories of a 1970s-style wage-price spiral.
Back then, the spiral dragged on for years, until the Federal Reserve stamped it out with high interest rates that drove down inflation and pushed the economy into recession.
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