Central banks will stave off a wage-price spiral at the expense of a recession

Monday, 19 September 2022

The risk of a wage-price spiral is undiminished as price increases are spreading and labor markets remain tight. Therefore the pressure increases on central banks to nip such a spiral in the bud by rapidly raising rates . But this will only succeed with the help of a recession. What does this mean for European and American long-term interest rates?

 

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Maria Thorvardardottir

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Maria Thorvardardottir