Society is entitled to ask about differentials and pay, but his job is to sort out RBS. "We make a mistake if we forget how wealth is generated".
One consequence of wide pay differentials is a more atomised society.
Why do pay differentials matter?
Capital flows driven by interest-rate differentials between rich and emerging economies (see right-hand chart) dwarf those caused by capital controls in other emerging markets, after all.
But the big change has been in wages: unlike in many developed countries, differentials between higher and lower earners have fallen in Latin America.
Or is it that Danes tolerate lower pay differentials and higher taxes?"For would-be students now, such debates are, literally, academic.
The shortage of funding for leave from teaching duties to concentrate on research also infuriates many British academics.But money does not explain the entire difference salary differentials also exist in other subjects that the best British universities excel at.
Massive price differentials with neighbouring Colombia have fuelled the contraband trade, to which the authorities have responded by closing the border at night.Although the president has often signalled his willingness to adopt corrective measures, he has been unable to achieve consensus among the different factions within the government.
Suppose a high minimum wage, by pressing on the structure of pay differentials, raises wage growth and hence inflation across the economy.
In 1997, our cover price in the most expensive country in the euro area was almost 40% bigger than in the cheapest; today the gap is less than 10%.In the medium term, the Internet should help to reinforce the impact of the euro, squeezing price differentials between countries by increasing price transparency and competition.
Its immediate effect will be to draw consumers' attention to the vast price differentials within Europe's health-care systems.
