Conversely, suppose that expansionary fiscal policy resulted in a rise in budget deficits. If this expansion were totally financed by borrowing from foreigners, domestic interest rates would not change much, and domestic investment and private saving might not either. In this scenario, there could be a simultaneous dollar-per-dollar change in budget and trade deficits - the classic twin-deficit scenario.
The ECB's experimental wage tracker so far points to a moderate increase in wage growth in this year and the next, below the projected inflation in the euro area.