Draghi: Wages must recover their purchasing power, but without creating a price-wage spiral

“In the European Union, rising inflation is not wholly the sign of overheating, but largely the result of a series of supply shocks,” he said 

“Wages must recover their purchasing power, but without creating a price-wage spiral that would result in turn in even higher interest rates.”

Bloomberg 9 June 2022

https://www.bloomberg.com/news/articles/2022-06-09/draghi-says-europe-s-record-inflation-doesn-t-show-overheating

 

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