Re:European Central Bank rises rates by 0.5%
by fleddr on Thursday July 21, 2022 @11:18AM
(#32180410)
True, the relation between wages and inflation is complicated.
A lot of companies in Germany (same in the Netherlands) are exporters. The products they produce are not consumed by local consumers, hence higher wages do not increase local inflation.
Similarly, for some companies wages are a limited part of their expenses. Some factories have like 10 workers to produce millions of items of output.
A lot of companies in Germany (same in the Netherlands) are exporters. The products they produce are not consumed by local consumers, hence higher wages do not increase local inflation.
Similarly, for some companies wages are a limited part of their expenses. Some factories have like 10 workers to produce millions of items of output.