Angelini, E.; Dieppe, A.; Pierluigi, B. - In: Journal of Macroeconomics 43 (2015) C, pp. 81-92
In this paper we study the experiences of wage and price mark-up adjustments (internal devaluation) in Germany (in the decade up to 2009) and Spain (in the 5-year after 2009) within the framework of the ECB’s New Multi-Country Model (NMCM). The NMCM works both in a rational expectation...