While the global financial crisis had a strong impact on economic activity in Germany, the impact of the euro area crisis on economic activity in Germany has so far been relatively mild. Trade flows by region reveal that German firms have recently redirected their exports towards the remaining...

Natural rate theory has dominated interpretations of economic trends and policy prescriptions over many decades, as economists contrasted high unemployment and lower inequality in Europe with the great American job machine. This paper discusses the relationship between skill structure and wage...