Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Problem : most of Europe is enduring cost inflation, while wages do not follow; only Germany meets the standard criteria for increased interest rates.

To you that is a problem. The ECB's stated policy goal is to prevent at all costs that wages follow costs.

They call this "second round effects".

Economics is politics by other means

by Migeru (migeru at eurotrib dot com) on Thu Apr 7th, 2011 at 04:51:09 PM EST

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