Eurozone workers must increasingly feel that they are putting themselves and the economy at risk by pushing for wage increases to try to make up for the loss of purchasing power they suffered during this crisis, but which is not matched by productivity. Bank (ECB) will be forced to be even tougher on interest rates (in hikes) after this behavior.
The warning came yesterday from the President of the ECB, Christine Lagarde, on the first day of debates at the ECB Forum, which, as usual, takes place in Sintra. Ends today, June 28.
Other economists present at the annual meeting reasoned with him about the danger that inflation in Europe is “more persistent” and harder to control because of wage increases and that this would make the job of the central bank more difficult, forcing it to tighten interest rates to make. . . This is the case of the chief economist of the International Monetary Fund,
As mentioned, wage growth represents a new challenge for the ECB, which sees this as a new source of “sustained” inflation that needs to be combated, Lagarde said in the opening speech of the ECB Forum.
Source: DN
