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Lipsey & Chrystal: Economics 11e

Chapter 18

Wage pressures are an important part of wage-price dynamics and underpin what is happening to the short-run aggregate supply curve.  Currently (early 2008) the most important country where wage pressures are important is Germany.  See for example:
Financial Times, 10 January 2008
search.ft.com/ftArticle?queryText=European+wage+talks%3A++German+unions+eye
+%E2%80%98juicy%E2%80%99+pay+round&y=7&aje=true&x=10&id=080110000128&ct=0  

The relevance of this for policy makers is covered in an adjoining article (which also links to Chapter 21):
Financial Times, 10 January 2008
search.ft.com/ftArticle?queryText=ECB%E2%80%99s
+pleas+for+restraint+at+odds+with+political+mood&y=6&aje=false&x=9&id=080110000158&ct=0