On the Anchoring Effect of Monetary Policy on the Labor Share of Income and the Rationality of Its Setting Mechanism
Abstract
Modern macroeconomic monetary theory suggests that the labor share of income has effectively become a core macroe-conomic parameter anchored by top policymakers through Open Market Operations (OMO). However, the setting of this parameter remains a subject of intense economic debate. This paper provides a detailed summary of these controversies, analyzes the scope of influence exerted by market agents other than the top policymakers on the labor share, and explores the rationality of its setting mechanism.
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