Yet our current arrangements lie precisely there, with industry or sectoral bargaining, implying that the actors (meaning unions and business associations) are big enough to inflict costs on the economy but not big enough to experience those costs themselves.
*  *  *  WSJ: The financial markets interpreted Thursday’s ECB decision to keep policy unchanged as suggesting the bar is high to additional stimulus. Is that an accurate assessment? The correct interpretation is: We’ll act if it is necessary. But there was no strong reason to act: Last week we, the Governing Council, found our baseline scenario broadly confirmed.