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Real Unit Labour Costs in Eurozone Countries: Drivers and Clusters

Ordóñez, Javier; Sala, Hector; Silva, José I. - Institute for the Study of Labor (IZA) - 2014

asymmetries in the convergence process of the RULCs and its components – real wages, capital intensity, and technology – are … achieving real convergence and, by extension, nominal convergence. We conclude by outlining technology as the key convergence … factor, and call for a renewed attention to real convergence indicators to strengthen the process of European integration. …

Persistent link: https://www.econbiz.de/10010884247

Unemployment, Growth and Fiscal Policy: New Insights on the Hysteresis Hypothesis

Raurich, Xavier; Sala, Hector; Sorolla, Valeri - Institute for the Study of Labor (IZA) - 2004

We develop a growth model with unemployment due to imperfections in the labor market. In this model, wage inertia and balanced budget rules cause a complementarity between capital and employment capable of explaining the existence of multiple equilibrium paths. Hysteresis is viewed as the result...

Persistent link: https://www.econbiz.de/10005822131

A Reappraisal of the Inflation-Unemployment Tradeoff

Snower, Dennis; Karanassou, Marika; Sala, Hector - Institute for the Study of Labor (IZA) - 2002

This paper offers a reappraisal of the inflation-unemployment tradeoff, based on "frictional growth" describing the interplay between nominal frictions and money growth. When the money supply grows in the presence of price inertia (due to staggered wage contracts with time discounting), the...

Persistent link: https://www.econbiz.de/10005761764

The European Phillips Curve: Does the NAIRU Exist?

Karanassou, Marika; Sala, Hector; Snower, Dennis J. - Institute for the Study of Labor (IZA) - 2003

This paper has two aims. First, it provides simple theoretical models that highlight two channels whereby monetary shocks have permanent real effects and the interactions between these channels. Second, it presents an empirical dynamic model, covering a panel of EU countries, and derives the...

Persistent link: https://www.econbiz.de/10005566739

Long-Run Inflation-Unemployment Dynamics: The Spanish Phillips Curve and Economic Policy

Snower, Dennis J.; Karanassou, Marika; Sala, Hector - Institute for the Study of Labor (IZA) - 2002

This paper takes a new look at the long-run dynamics of inflation and unemployment in response to permanent changes in the growth rate of the money supply. We examine the Phillips curve from the perspective of what we call "frictional growth", i.e. the interaction between money growth and...

Persistent link: https://www.econbiz.de/10005566827