In the US, the fed’s stated strategy is to keep wages down.
It’s not their stated strategy but it’s probably safe to assume they subscribe to the baseless “wage price spiral.” The bottom line is that there is still a LOT of stimulus money circulating, keeping inflation high. Ideally this would be targeted with a tax on the wealthy, but in the absence of that, the Fed has to use their very blunt tools. I don’t see inflation improving until there’s a recession.
It’s not their stated strategy but it’s probably safe to assume they subscribe to the baseless “wage price spiral.” The bottom line is that there is still a LOT of stimulus money circulating, keeping inflation high. Ideally this would be targeted with a tax on the wealthy, but in the absence of that, the Fed has to use their very blunt tools. I don’t see inflation improving until there’s a recession.