A tightening will limit the accumulation of debt. One element of such consolidation is that growth in public consumption must not be higher than planned. It is therefore important to ensure that local authorities have sufficient incentive to observe the agreements. Bank taxes as proposed for regulation must be of considerable size to have any impact.
As we’ve suggested on a number of occasions, in time it is likely that the availability of workers, not jobs, will be the main concern.8[8] And in that world, one imagines that real wages might grow a little more rapidly than otherwise, in order to encourage participation.