Sticky Wages and the Macro Story by Krugman

In any case, however, we are in a liquidity trap, and balance sheet effects are very important. So there is no reason to believe that cutting wages would be helpful; on the contrary, falling wages would worsen the balance-sheet problem, a point some of us have been making for quite a while. 

So when I emphasize nominal wage rigidity, I am defending an analysis of how the economy works, which is not at all the same thing as saying that this rigidity is the problem. On the contrary, for the US (though not for countries like Spain), wage stickiness is if anything good for us right now, helping stave off destructive deflation.

Michal Kalecki on the Great Moderation by Steve Randy Waldman