The wage deflation in USA means what? - BBH

FXStreet (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman noted that since Yellen's discussion at Jackson Hole, more economists are talking about pent-up wage deflation.

Key Quotes:

"This is the idea that during the contraction, nominal wages did not fall as much as they "should" have to clear the market."

"The implication is that the lack of wage pressure now reflects that wages were too high previously. In turn, this means that the present lack of wage pressure should not be confused with the degree of tightness in the labor market."