Wages and Prices - India Shining!!
The last salary survey by Towers Perrin (http://www.towersperrin.com/tp/getwebcachedoc?webc=HRS/USA/2007/200711/2007_Global_Compensation_Planning_Report_nl.pdf ) shows that globally salaries are on the rise. But the rise in India and Indonesia are phenomenally high. Though Argentina and Venezuala are higher, the comparatively high inflation offsets it). The main cause for the rise is the shortage in qualified personnel in service sectors like IT , Telecom etc. The manufacturing and similar sectors are lagging far behind . Farming is not even counted in these surveys. But consequence of such a high salary rises have boosted up prices in the super markets and real estate. Hence discussions like this in the Indian Economy Blog http://indianeconomy.org/2007/12/30/indias-retail-revolution-question-2/. Or is it the other way round?