Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
European Tribune - Is the German position sustainable?
whether the ugly spectre of (gasp!) wage inflation will strike
The German government shouldn't be too worried about that one:
Brüderle backs big pay rises as economy booms - The Local
Workers hungry to share in the spoils of Germany's booming economy through higher wages have been given encouragement from a surprising place: the country's pro-business Economy Minister Rainer Brüderle.
Now, to talk about a "booming German economy" in October 2010 is a bit too celebratory, but still...

Keynesianism is intellectually hard, as evidenced by the inability of many trained economists to get it - Paul Krugman
by Migeru (migeru at eurotrib dot com) on Tue Jan 25th, 2011 at 04:54:49 AM EST
The German government, or just the FDP's Brüderle?

Mind you, if the German administration as a whole were willing to accept a sizeable dose of wage inflation, wouldn't that be pushback against the deflationary years and a means of rebalancing the relative situation of eurozone countries?

by afew (afew(a in a circle)eurotrib_dot_com) on Tue Jan 25th, 2011 at 08:28:13 AM EST
[ Parent ]
I suspect that German neo-libs see themselves as competing on a global basis with the US, China, BRIC etc. - not with peripheral EU economies...

Index of Frank's Diaries
by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Tue Jan 25th, 2011 at 10:49:29 AM EST
[ Parent ]
The neo-libs (FDP) are merely trying to stay alive, capturing a popular sentiment to stay above the 5% representation threshold. They're in an emergency situation, and will try anything. That doesn't presume that they'll stick to fighting for anything more than token higher wages after the elections, if even that.

"Life shrinks or expands in proportion to one's courage." - AnaÔs Nin
by Crazy Horse on Tue Jan 25th, 2011 at 12:43:10 PM EST
[ Parent ]
I wasn't suggesting the German neolibs would be interested, but that we at ET might see some wage inflation in Germany as a rebalancing factor.
by afew (afew(a in a circle)eurotrib_dot_com) on Wed Jan 26th, 2011 at 02:30:34 AM EST
[ Parent ]


Occasional Series