Signs of accelerating wage increases in mid-2011



<p style="border-top-width: 0px; border-right-width: 0px; border-bottom-width: 0px; border-left-width: 0px; border-style: initial; border-color: initial; font-style: inherit; font-weight: inherit; margin-top: 10px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; vertical-align: baseline; border-style: initial; border-color: initial; border-style: initial; border-color: initial; border-style: initial; border-color: initial; border-style: initial; border-color: initial; border-style: initial; border-color: initial; border-style: initial; border-color: initial; border-style: initial; border-color: initial; border-style: initial; border-color: initial; border-style: initial; border-color: initial; border-style: initial; border-color: initial; text-align: left; ">On signs of accelerating wage increases: Paul Krugman: "Bloomberg reports on signs that wages may be accelerating. It’s worth bearing in mind that we’re talking about modest stuff — if the employment cost index accelerates to 2 percent, that’s still just productivity growth, and hardly a sign of runaway inflation [as it is consistent with price inflation of zero]. Still, this isn’t what I expected to see, and I will be watching developments.... [Nevertheless,] the invisible bond vigilantes are intensifying their invisible attack: 10-years down to 3.06 percent, and the TIPS spread falling..."