The conditions for wage increases have been met largely as the labor market conditions have tightened with corporate profits at high levels. The Bank strongly expects that both labor and management will negotiate by making the most of the favorable conditions, leading to a virtuous cycle of the economy.
Banco de España (2015) “Variation in the Cyclical Sensitivity of Spanish Inflation: an Initial Approximation”, Economic Bulletin July-August 2013. Banco de España (2015), Annual Report. Bernanke, B. (2010), “The Economic Outlook and Monetary Policy”, Speech at the Federal Reserve Bank of Kansas City Economic Symposium, Jackson Hole, Wyoming.