Bank’s forecasts will be vindicated, like stopped clock is right twice a day
by Larry Elliott from on (#12P7K)
Blanchflower and Machin argue labour market must tighten further before pay growth picks up, something Bank of England consistently fails to acknowledge
Even a stopped clock is right twice a day so there will come 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.
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