Monitoring Wage Developments, Anchoring Inflation Expectations, and Analyzing Monetary Policy

This chapter discusses the importance of monitoring wage developments in relation to inflation, highlighting the contribution of labor-intensive services to rising prices. It also emphasizes the need to anchor inflation expectations at 2% and the role of trade unions and business associations in preventing further inflation. The chapter also touches upon the language used to describe monetary policy, interest rate trajectory analysis, and the impact of restrictive monetary policy on financing channels in determining the strength of monetary policy transmission.