When real wages catch up to the levels they were at before the financial crisis, inflation will start rising “fast”, the deputy governor of Romania’s central bank said today (March 14).

But achieving that result will mean more use of fiscal policy rather than continuing to rely on monetary measures, Liviu Voinea said. Voinea said the main reason rising employment has failed to shift inflation is what he calls the “cumulated wage gap”. He defined this in a June 2018 paper as “the cumulated gap