
Euro Area Inflation and how Import Prices, Profits, and Wages fit in
IMF Podcasts
Introduction
Fredrik Tuscany: Europe saw double-digit inflation for the first time in decades last fall. Inflation also reflects higher corporate profits and to a lesser extent, labor costs. Nominal wages have been increasing, but real wages like purchasing power has been eroded. What might happen to corporate profits when inflation drives workers to push for higher pay?
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