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‘The IMF, Spain And The Return Of The Confidence Fairy’

‘The IMF, Spain And The Return Of The Confidence Fairy’

Pay attention in particular to the graph at the end of the article. It shows Evolution of Labour Unit Costs since 1999 (in %); and which country has consistently undercut the price stability line (i.e. inflation of under, but close to 2% a year)? Right, Germany. Massive wage compression is sold as competitiveness, while in fact Germany isn’t playing by the ECB’s own rulebook.

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