Schettkat, Ronald - In: Intereconomics : review of European economic policy 45 (2010) 5, pp. 297-304
"Natural rate theory" - the application of the efficient market hypothesis to labour markets has guided economic policy … low wages. The European discussion focused almost exclusively on labour market reforms to reduce unemployment. Against the … background of the recent dramatic drop in economic activity, this paper confronts natural rate theory with actual economic trends …