There are a number of factors that can cause wages to rise or fall. Over the long term the most important of these are productivity and inflation. Productivity increases are primarily a function of technological improvements, and that keeps them mostly out of the control of bankers, governments and markets. Inflation is directly influenced by central banks and monetary policy. That means wage growth is also indirectly influenced by central bank monetary policy. While some degree of wage growth is good, too much wage growth can cause excess inflation. This makes controlling wage growth a balancing act in many economies, where the primary focus of central banks is on economic growth and price stability.