Spain's Ordoez: immigration keeps inflation low
Explaining that Spain's foreign resident population rose from just over 900,000 in the year 2000 to 4.2 million in 2006, Ordoez suggested that "an increasing labour force raises growth potential, which helps reduce the feed-through of strong demand pressures to inflation... And [with immigration] labour supply becomes more responsive to changes in economic conditions."
However Ordoez cautioned that the arrival of workers with higher participation rates and lower reservation wages normally
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