7 
The results of the balance of real wage target and productivity 
growth are different in different countries: In France, 
England, Italy the decline in productivity was stronger then 
that of real wage target, therefore acceleration of money 
wages. In Germany and Japan the pressure on real wage targets 
was the stronger factor. The oil shocks, although drastic, 
seem to have been less important (Table III) . The preceding 
arguments lend themselves to an explanation of stagflation.