Euro Area Inflation and how Import Prices, Profits, and Wages fit in
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The Distribution of Profitability in Europe
In terms of European inflation, has profitability within corporations actually increased to any great extent? Right, so a really tricky question. One thing we know is let me start with perhaps the distributional part between profits and labor. We can say that relatively so far, profits have done better than wages. On aggregate, our sense is more stable profitability rather than sharply increased profitability.
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