The Eurozone’s Coming Inflation Divide
“So now – for once – it is the German economy that is bound for higher inflation than the rest of Europe. And make no mistake about whether rising prices will feed through to wage growth. Already, barely a year into the recovery from the worst economic crisis since World War II, unemployment in Germany is at a post-unification low. With the economy likely to grow substantially as Chinese firms’ competitiveness deteriorates due to rising wages, it is hard to imagine that German trade unions will not demand hefty real-wage increases as well.” Read more.
“The Eurozone’s Coming Inflation Divide”
Raphael A. Auer
Project Syndicate.org, March 31, 2011
