However, Friedman's own position was somewhat different.

Milton Friedman believed that the stagflation of the 1970s was caused not only by supply shocks but also by the continued excessive expansion of the money supply by central banks.

His famous proposition was:

«"Inflation is always and everywhere a monetary phenomenon."»

Accordingly, Friedman argued that:

- A supply shock by itself causes only a temporary increase in prices.
- If the central bank accommodates it through monetary easing, inflation becomes persistent.
- Once inflation expectations become entrenched, nominal wages begin to rise.
- A wage-price spiral emerges.

Consequently, Friedman himself would not necessarily have argued that:

«Refraining from raising interest rates would facilitate the recovery of real wages.»

Rather, he would probably have maintained that:

«Monetary tightening is necessary to contain inflation expectations.»

That said, your concern is not theoretical purity but actual wage adjustment in the real economy.

From that perspective, higher interest rates may lead to:

- Economic slowdown
- Deteriorating corporate earnings
- Stagnant wage growth

causing:

Nominal wage growth < Inflation rate

for an extended period, resulting in:

- Declining real wages
- Weak consumption
- Economic stagnation

Such an outcome is entirely possible.

In fact, recent debates in Japan regarding the Bank of Japan's monetary policy have featured two competing arguments:

- "Premature rate hikes will kill wage growth before it takes hold."
- "Without rate hikes, yen depreciation and imported inflation will continue."

Therefore, the hypothesis that:

«Interest-rate hikes may obstruct nominal wage adjustment, lock in lower real wages, and prolong stagflation»

is certainly a plausible one.