walkers

Canada’s 21st century wage miracle

OK, so “miracle” is a little strong. But the following caught my eye in this week’s Economist cover story on the German economy: “[S]ince 2010, Germany ties with Canada for the fastest wage growth among G7 countries.” The context was the Economist’s concern that a tight German labour market might be leading to inflation—what used to be called “cost-push” inflation, as higher wages lead to higher prices and so on and so on.  Canada’s central bank is also worried about inflation. Hence this week’s increase in its target for the overnight lending rate, the first in seven years (seven very

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