Incomes policy

Incomes policy (English incomes policy) includes the economic policies of the state, which often take in cooperation with business and labor organizations, on the development of wages, salaries and prices influence. A major goal of the incomes policy is to combat inflation by stabilizing the price level. Thus, the incomes policy differs from a policy that seeks to influence the distribution of income. In addition to the economic and political stability objective can state income policy will also have the assurance of a minimum income to the destination.

The incomes policy is " an integral part of economic policy instruments " and had its origin in the basic trade-off between full employment and price stability. The early protagonists of a full employment policy in the UK and in Sweden they regarded as a compensatory tool for resolving this conflict of aims. The anticipated at full employment inflationary effects of wage policy should be kept with the help of a " wage duties" under control after the proposal of the British welfare economists Lord Beveridge.

Methods of incomes policy

Your goals can achieve incomes policy through various policy actions. After Wilhelm Rall they can be divided into a) indicative, b ) imperative and c ) collaborative methods differentiate

• Indicative income policy

With information, orientation data and moral persuasion, the state tries to influence the actions of the collective organizations to achieve price stability.

• Imperatives incomes policy

The State shall adopt regulations and laws with binding "guide - lines", in extreme cases, a wage and price freeze to control wage and price policy decisions.

• Cooperative incomes policy

State and associations agree voluntarily to ensure compliance with jointly developed orientation data for wage and price increases. Historical example of this is the Concerted Action.