Blanchflower and Machin argue labour market must tighten further before pay growth picks up,something Bank of England consistently fails to acknowledgeEven a stopped clock is right twice a day so there will reach a point when the Bank of England’s forecasts for rising wage inflation will be vindicated. But not for a while.
That’s the main conclusion of the latest paper from Danny Blanchflower and Steve Machin, which argues that the labour market will need to tighten substantially further before pay growth starts to pick up. Related: UK's productivity plot is ‘indistinct collection of existing policies’ Continue reading...
Source: theguardian.com