Upward pressure on wages and prices can be increased by appropriately addressing the factors of a more structural nature mentioned in Section II. In fact, wages for women are increasing steadily on the back of efforts by the government and firms to eliminate the wage gap between men and women.
If saving is inadequate to meet these investment needs, then interest rates rise, increasing the return to saving and perhaps boosting saving to some extent but also making it worthwhile for firms to reorganize their production methods to use less capital per worker.