Governments are looking at generating inflation too
Combating deflation is a global priority, but developments in national labour markets have been at the forefront of such structural headwinds for prices. The efficacy of monetary policy in these areas is limited, but now non-monetary authorities are starting to take things into their own hands. On Thursday, UK Chancellor George Osborne called for above-inflation minimum wage hikes. This follows the Japan Business Federation’s first ‘endorsement’ of wage hikes in six years and the introduction of
Germany’s first ever minimum wage in the country’s grand-coalition agreement.
Read the full report: UBS