ABSTRACT

In this' chapter we will be considering the problems that arise if an attempt is made to restrain inflationary pressures by means of some centralised influence over, or control of , over-ambitious wage claims. Such centralised arrangements can take many different institutional forms and the institutions may be endowed with varied degrees of formal powers . At the one extreme they may be designed merely to give guidance to other wage-fixing bodies by the publication of reports on the general economic situation and its implications for what would constitute a reasonable non-inflationary form for wage settlements ; we will refer to such bodies as 'centralised wage-guidance institutions' . At the other extreme the centralised institutions may be given formal powers to determine what shall be the actual rates of pay payable in the economy ; we will refer to such bodies as 'centralised wage-fixing institutions'.