Wednesday, May 23, 2007

Ghost of Arthur Burns...

...says: 'Inflation? Don't look at me, I'm just head of the central bank.':

MADRID - European Central Bank president Jean-Claude Trichet said unions must act with ''responsibility'' in negotiating wages in order to keep inflation under control in the euro zone.

''Wage agreements should avoid wage developments that would eventually lead to inflationary pressures and harm the purchasing power of all euro citizens,'' Trichet said at the 2007 congress of the European Trade Union Confederation.

Trichet later clarified that he did not mean to suggest unions had not been responsible in the past, just that ''they should continue to be responsible.''

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