The idea that wage increases will push up prices is a common inflation fear. But rather than a "wage-price spiral", it is Europe's vulnerability to global shocks that is the key factor in inflation and its low wages that exacerbate the cost of living crisis.
Inflation is high. The United States published an annual rate of 8 per cent in August 2022, while the Eurozone saw an average of 10 per cent in September. The European average masks significant differences between member states. Fr...
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This article is published in cooperation with the Green European Journal. Their new print issue, Priced Out: The Cost of Living in a Disrupted World looks at the roots of the cost of living crisis that is hitting societies across Europe.
Jonathan Marie is associate professor at the Sorbonne Paris Nord University. Virginie Monvoisin is associate professor at the Grenoble École de Management. They are both members of the Économistes atterrés collective.
This article is published in cooperation with the Green European Journal. Their new print issue, Priced Out: The Cost of Living in a Disrupted World looks at the roots of the cost of living crisis that is hitting societies across Europe.