Wage-Price Spiral: Labour Market Overheating

⚠ This is a flightplan, not a commitment. Flightplans are hypothetical policy proposals modelled in the Ducklings causal simulation. They become projects only when voted into adoption through Consensus. Metrics shown reflect simulation model outputs, not real-world outcomes.

Revenue-neutral

Fiscal Impact

Immediate (weeks–months)

Time Horizon

Not assessed

Implementation Risk

Epoch 11

Continuum Entry

Overview

With unemployment at 3.56% (well below NAIRU), employers are bidding up wages. Wage growth accelerates to 5.5%, boosting income tax revenue and EI premiums but feeding directly into inflation. The BoC faces a dilemma: tighten and kill growth, or tolerate above-target inflation.

Ducklings Simulation

This proposal is active in the Ducklings causal simulation (Epoch 11). The simulation models downstream effects using a BFS cascade engine with strength-weighted, time-delayed edges capped at 3-hop depth and ±25% per-hop limits. Cascade outputs are bounded by variable saturation thresholds.

Domain: Economic Policy | Proposal ID: 50 | Series: Continuum

How to Engage

Discuss this flightplan in the Pond forum under Economic Policy. Vote on adoption through Consensus. Adopted flightplans become projects with real-world implementation tracking.

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