from institutions, and to some extent, geography, on long-run prosperity and TFP, may be thus explained. …

exercises indicate that recent findings of the conduciveness of good institutions, and, to some extent trade, on levels of TFP …

unemployment vary both with large versus small real exchange rate disequilibria and rising versus falling unemployment regimes. The … adjustment in periods of falling unemployment. This implies that prices and wages are more flexible when real output is high … demanding and getting higher wages. Unemployment is reduced following gains in competitiveness when the real exchange rate is …