Brzeski: Globalization Pressures German Wages

The video discusses the impact of globalization on wages and disinflation, particularly in Germany, where competition and the refugee crisis are affecting wage growth. It explores the European Central Bank's (ECB) strategies, including quantitative easing (QE) and buying corporate bonds, to address economic challenges. The ECB's actions are unprecedented and contentious, as they venture into supporting private company bonds. The discussion also touches on whether these measures will lead to increased investment by corporates and SMEs.

What is one reason for the lack of wage pressure in Germany?

• High domestic demand

• Strong labor unions

• Competition from other countries

• Government wage controls

What is one of the ECB's strategies to address economic challenges?

• Increasing interest rates

• Implementing quantitative easing

• Reducing government spending

• Raising taxes

What unusual financial situation is mentioned regarding German bonds?

• Stable bond prices

• Record high interest rates

• Negative yields

• High inflation rates

What unconventional approach has the ECB taken in the corporate bond market?

• Increasing bond interest rates

• Issuing new bonds

• Buying individual company bonds

• Selling government bonds

What is a potential outcome hoped for from the ECB's bond-buying strategy?

• More investment from SMEs

• Higher inflation rates

• Decreased corporate profits

• Increased government debt