That policy sought to restrain wages and spending to hold down inflation and the trade and budget deficits.

Moreover, to keep costs under control, companies here and elsewhere have developed a variety of strategies to help restrain wages.

She has kept unemployment high to break unions and restrain wages; she has even fought her own finance minister, who seeks less monetary restraint.

In the view of Mr. Jarai, without privatization companies have little incentive to restrain wages, a big factor behind Hungary's inflation and rising production costs.

As for the owners, even those who voted for the agreement knew that it fell well short of their original objective, a salary cap to restrain skyrocketing wages.

The workers who survive these cutbacks are not getting paid more, and fear has undoubtedly played its role in restraining wages.

The Government's answer is radical surgery: cut Government subsidies, free prices, restrain wages and stabilize the currency.

"Sprint said they had to restrain wages because the company's performance wasn't so good, but we think a lot of it has to do with offshoring."

The Government would restrain wages through informal pressure and public campaigns.

Mr. Burns, who had previously spoken out on the need to restrain wages, supported the wage and price controls but expressed doubt about ending the dollar-gold link.