Why the ECB Is Relaxed on End of QE Despite Slower Growth
(Bloomberg) -- In 2017, the euro-area economy expanded fast but wages were weak. This year, the economy slowed but pay packets thickened, a mix that suits the European Central Bank much better, according to Bloomberg Economics. Evidence that the erosion of spare capacity is feeding wage gains helps explain why the ECB is relaxed about bringing asset purchases to an end even as growth has slowed -- enough progress on economic slack has already been made.
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