ecb minutes, 2021-10-27
In monitoring wage developments, it would be essential to differentiate between, on the one hand, wage adjustments that were simply a response to the unexpectedly high current inflation rate or a shift in the expected level of inflation towards the target and, on the other hand, a self-reinforcing process whereby employers accommodated demands for higher pay in expectation of persistent excess inflation in the future.
Sentiment: neutral
Topic: mp_labor_market