Clausen, Volker; Wohltmann, Hans-Werner - In: Journal of Economics and Statistics (Jahrbuecher fuer … 233 (2013) 2, pp. 159-187
This paper analyzes the dynamic effects of oil price increases in a small two-country monetary union with asymmetric wage adjustment equations. Common oil price shocks lead during the adjustment process to temporary divergences in output and inflation and also to reversals in the relative...