Market Structures and Wage-Push Inflation.

One unusual characteristic of the so-called 1958 recession was the continued rise in prices in the presence of declining output and employment. In this article the author discusses the possibility that inflation has been institutionalized in the economy as the result of structural developments in both labor and product markets. Consequently, within limits, the classic remedies for inflation may be inadequate, since they assume market characteristics and responses which are no longer relevant in many sectors of the economy. An earlier version of this paper was presented to the April 1958 meeting of the Midwest Economics Association. [ABSTRACT FROM AUTHOR]