Second-round effects are the reactions of market participants to first-round effects, ie to a specific earlier increase – or decrease – in the prices of individual goods or services. The focus here is on the reaction of the wage-setting parties. If, for example, in the wake of an increase in the price of crude oil, the unions aim to regain their member's purchasing power, which was reduced by the increase, to its original level by way of a major wage increase, there is the danger of a price-wage spiral. In such a case, rising prices and wages could drive each other up, potentially resulting in further accelerating inflation. In a situation like this, there is also the danger of increased inflation expectations, which in turn makes it more difficult to restore price stability. On the other hand, if inflation expectations remain at a stable, low level, this can help to keep general inflationary pressure in check. Monetary policymakers typically aim to prevent second-round effects by using monetary policy instruments.