No, in the 70s Nixon had just removed the gold standard, the real reason for the salary inflation WAS to convince people that the newly invented petrodollar had value by increasing the interest rate AND the salary to compete with the gold price; by extracting more energy from the Saudis to do the work.
Without the petrodollar and expedient Saudi oil, raising interest rates to fight a "permanent for the rest of eternity" physical lack of energy is going to go terribly wrong.
I suspect they will stop at 1% in Sweden when all households/businesses start to fail (because we have more debt than in the 70s) and then we'll get cashless UBI, which will lead to monetary inflation on top of the scarcity inflation.
> Whenever there is significant price inflation there will be salary inflation too, sooner or later.
You better be damn sure about that, because othervise when the music stops you got nowhere to sit!
Without the petrodollar and expedient Saudi oil, raising interest rates to fight a "permanent for the rest of eternity" physical lack of energy is going to go terribly wrong.
I suspect they will stop at 1% in Sweden when all households/businesses start to fail (because we have more debt than in the 70s) and then we'll get cashless UBI, which will lead to monetary inflation on top of the scarcity inflation.
> Whenever there is significant price inflation there will be salary inflation too, sooner or later.
You better be damn sure about that, because othervise when the music stops you got nowhere to sit!