Pay-rise and Inflation??
One of my colleague has highlighted this interesting article regarding how workers wanted a pay rise to overcome inflation effects. But an analysis would definitely point us to a direction where a high pay rise would mean more money with people and hence more money to spend and obviously would rise inflation.
As most of you might already know, we here in Australia, are fighting inflation which is why Reserve Bank Of Australia has been constantly increasing interest rates. If people or workers want a high pay-rise to fight inflation then they are forgetting that this would add more to inflation. I just think that people have got used to the high standard of living which is why its being so hard for them (I would include myself as well) to swallow the after-math of the rising interest rates by RBA to fight it.
But one thing that always gets on to my mind when I think about inflation is, why dint RBA react to it when it first noticed its signs in the Australian economy? And now, its just too harsh for people to cope with the effects. What a chaos!!
As a note, I would add that, I am not an economist. I have just done some reading on the news and a bit of individual research. Please consider this post as my personal opinion and I am not responsible for any of the practical outcomes of this discussion (just to be on the safe-side) 