Analysis in terms of the two-sector open economy shows that in bringing the market economy to East Germany, West Germany seems to have disregarded important fundamentals. Premature formation of a currency union led to a substantial real appreciation of the East German currency. Premature...

We incorporate a wage bargaining structure in a dynamic general equilibrium model and show how this feature changes short and long-run properties of equilibria compared with a perfectly competitive setting. We discuss how employment, capital, and income shares respond to wage setting shocks and...

Persistently high unemployment rates in Germany have led to a long-running controversy on the causes of the unemployment problem. This paper aims to re­view the contribution of Keynesian and monetarist theories to this controversy and explores empirically their implications for the explanation...

Viel wird über die "Hartz-Reformen" und ihre Effekte spekuliert, aber es gibt bislang so gut wie keine aussagekräftigen Belege, auf die sich derartige Schlussfolgerungen stützen können. Auch wenn sich viele Wirkungen erst im Zeitablauf richtig entfalten werden, besteht doch die Möglichkeit...