In this' chapter we will be considering the problems that arise if an attempt is made to restrain inflationary pressures by means of some centralised influence over, or control of , over-ambitious wage claims. Such centralised arrangements can take many different institutional forms and the institutions may be endowed with varied degrees of formal powers . At the one extreme they may be designed merely to give guidance to other wage-fixing bodies by the publication of reports on the general economic situation and its implications for what would constitute a reasonable non-inflationary form for wage settlements ; we will refer to such bodies as 'centralised wage-guidance institutions' . At the other extreme the centralised institutions may be given formal powers to determine what shall be the actual rates of pay payable in the economy ; we will refer to such bodies as 'centralised wage-fixing institutions'.