The implication for a variable that (like a ratchet) can move one direction but not the other. Thus if wages or prices are are inflexible downward but not upward, then fluctuations in the economy will only cause them, intermittently, to rise.
Related information about ratchet effect:
- Ratchet effect - Wikipedia, the free encyclopedia
A metaphorical ratchet effect is an instance of the restrained ability of human processes to be reversed once a specific thing has happened, analogous with the ...
- Ratchet effect - The Free Dictionary
(Economics) Economics an effect that occurs when a price or wage increases as a result of temporary pressure but fails to fall back when the pressure is ...
- Chapter II. The Ratchet Effect
II. The ratchet effect. The ratchet is a simple, ubiquitous, ancient bit of machinery. There's one in your bicycle wheel (it allows you to coast without pedaling), ...
- What is ratchet effect? definition and meaning
Definition of ratchet effect: Tendency of people to be influenced by the previous highest (or best) level of a factor (variable). For example, workers' satisfaction ...
- Ratchet effect | Define Ratchet effect at Dictionary.com
intermittent growth, increase, expansion, or the like: the ratchet effect of defense expenditures. Relevant Questions. In Which of the Followin... The Equilibrium ...
- Ratchet Effect
Two stair like plates move alongside each other ultimately downwards. However, while one of them slides down uniformly, the other one staggers up and down, ...
- What is the Ratchet Effect? - Times Of India
Jul 3, 2011 ... The Ratchet Effect suggests that when incomes of individuals fall, their consumption expenditure does not fall as much. This is partly because ...
- Competition and the Ratchet Effect
In labor markets, the ratchet effect refers to a situation where workers subject to performance pay choose to restrict their output, because they rationally anticipate ...