Re:Why inflation is not a threat
by mrtksn on Sunday March 14, 2021 @09:42AM
(#26455331)
Salaries are always adjusted to the inflation if there's a free market.
Depending on how hard is the inflation, you receive yearly, semi yearly, monthly, weekly or in extreme cases daily adjustments. Your salary updates also include the expected inflation.
That's of course when the economy is performing well. If the economy is slowing in an inflationary environment, you may easily end up on the wrong side since every update is actually a salary renegotiation and in a slowing economy your job might receive pay cuts in real terms.
Depending on how hard is the inflation, you receive yearly, semi yearly, monthly, weekly or in extreme cases daily adjustments. Your salary updates also include the expected inflation.
That's of course when the economy is performing well. If the economy is slowing in an inflationary environment, you may easily end up on the wrong side since every update is actually a salary renegotiation and in a slowing economy your job might receive pay cuts in real terms.