Prof. Almut Balleer on the Impact of Wage Indexing

13/05/2022
 

In Luxembourg and Belgium, the development of wages and pensions is automatically indexed to the inflation rate. This kind of adjusting to the average increases in the cost of living initially protects consumers against a loss of inflation-induced buying power.

Prof. Almut Balleer of the Chair of Applied Economics spoke in RTL Aktuell and on ntv about potential risks of this kind of procedure, e.g. endangering the competitiveness of individual firms, or a further fueling of inflation on account of a wage-price spiral if higher wage costs are passed on to the customers.

Here you will find links to the videos in RTL Aktuell (viewable at about minute 10:00) and on n-tv.

 

Prof. Almut Balleer on March 10, 2022 commenting on the impact of rising energy prices:

Energy prices have been rising sharply for the last few weeks, most recently also due to the war in Ukraine. As a result, social inequality is increasing, as especially low-income sections of the population suffer under rising prices. This so-called energy poverty affects around eleven percent of the population in Germany.

Prof. Almut Balleer from the Chair of Applied Economics comments on the problem of rising energy prices in an article published by WDR. It is expected that prices will rise still further. To alleviate energy poverty, Prof. Balleer proposes transfer payments to relieve low-income households.

Click here to read the whole article.