The short-term fixation on private benefits by hook or by crook, which has turned yesterday’s financial wizards into today’s leading exponents of white collar and financial crime, must give way to a clearer focus on the longer term and the public good aspects of our financial interaction with our fellow-man. Now, in today’s world, Keynes and his precepts are experiencing a revival.
Domestic cost developments, as captured by unit labour costs, play a key role in determining competitiveness. Unit labour costs, which correspond to the ratio of compensation per employee over labour productivity, reflect wage developments in comparison to productivity dynamics.