Crombrugghe, Alain L de - C.E.P.R. Discussion Papers - 1997
This paper studies the role of wage and pension pressures in explaining the budget deficit crisis of 1991–2 after the … ascribed to the excessive wage recovery of late 1990 and 1991. Insiders set wages ignoring the unemployed and exploiting the … later helped overcome the budget crisis. The positive revenue effect of higher wages and higher tax rates could not …