Explore the intricate link between social pacts, employment, and economic growth in this insightful reappraisal of Ezio Tarantelli’s thought. Discover how social pacts, negotiated among governments, employers, and workers, impact labour market flexibility and economic stability in the face of globalization. Acocella delves into the crucial role of trade unions in setting wages based on inflation targets, offering a perspective vital for understanding contemporary economic policy. Essential reading for economists, policymakers, and students of labour economics seeking to grasp evolving global economic dynamics and foster sustainable growth.