Daily Telegraph - "We Need Wage Inflation". Never thought I'd hear that:

http://www.telegraph.co.uk/finance/comment/11220695/Only-a-good-old-fashioned-bout-of-wage-inflation-can-save-the-public-finances.html​



"...low inflation and low nominal wage growth are making fiscal consolidation extremely difficult. If tax revenues can’t be made to rise, that leaves even more of the hard lifting to be done by spending cuts. And on this front, we must assume that the low hanging fruit has already been plucked. The Office for Budget Responsibility implies in its forecasts roughly a million public sector job cuts by the end of the consolidation in 2018. So far we have had little more than 300,000. "