Fisher, Jonas D.M.; Hornstein, Andreas - Federal Reserve Bank of Chicago - 2001
We study the behavior of output, employment, consumption, and investment in Germany during the Great Depression of 1928 …-37. In this time period, real wages were countercyclical, and productivity and fiscal policy were procyclical. We use the … neoclassical growth model to investigate how much these factors contribute to the Depression. We find that real wages, which were …