Nordea questions the ideas of neoliberalism and Milton Friedman about the connection between rising wages and inflation.
Questioned connection between rising wages and inflation
High wages and inflation do not have clear connections. Read more about how the 90s crisis was not due to what we would have had for high welfare.
Post-Covid inflation depends on multiple factors disrupting production not on too high welfare.
High wages and inflation do not go together. When the tax level is too low, public investment is reduced too much and the many low-income earners' purchases too much. Then it shall be too low development of GDP/capita.
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