Wage developments remain a cause for concern, as the upward trend in the rate of increase in nominal wages recorded over recent years continued even when the economy slowed down.

The economic collapse, when inflows of capital halt, can be very painful - even more so if a fixed exchange rate (or currency union) demands a period of falling nominal wages and prices.

On a nominal basis, for example, it is clear that the currency is appreciating, interest rates are rising, and wages are soaring, but it is not the nominal change that matters.