Pablo Hernández de Cos is clear in shifting the complex reality and implications of the runaway inflation that Spain is suffering: “a good that the Spanish economy does not produce has become more expensive”, and the result is “we are poorer than ever“The loss is inevitable, and the only thing we can do is to spread the damage”, underlined the governor of the Bank of Spain during his appearance in Congress so that his women would better understand what the real situation is.
And in that “distribution of losses”, Hernández de Cos is equally clear, saying that pensioners and civil servants should also be part of the income agreement that is being demanded from companies and workers in the private sector. is that Public pay and pension should not increase at the same rate as CPISomething that the government has already promised in the second case and is planning to implement before next year.
“If every economic agent tries to avoid the loss of real income, what will cause it? An inflationary spiral that will produce worse effectsThe Governor of the Bank of Spain continues to explain the focus on the private sector: “If employers marginalize everything and workers want a full wage increase, there will be a greater loss of welfare in the end, ” he pointed out.
The head of the Bank of Spain has also verified that, in fact, Workers Are Already Suffering “Significant Loss of Purchasing Power” in recent quarters”, although he has also pointed out that “there is a certain weariness in this implied rent agreement”. That is, in his opinion, it is necessary to expedite this rent agreement.
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