In Germany, the right accorded by the German constitution to employees to negotiate working conditions and wage payments with employers without interference from third parties. – Time and again, the social partners accuse the central bank of interfering in negotiations with threatening pronouncements. The central bank’s task, however, is to ensure that money is measured. If price stability is jeopardized by excessive wage settlements (escalations in the wage bargaining process: the agreed wage is further above the marginal product of labor), it is perfectly justified for the central bank to point this out clearly. – See inflation compensation, wage, indexed, wage-price spiral, oil price compensation, second-round effects.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
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https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/