leads to constantly rising unemployment and tax rates. The resulting crisis may trigger new insights into economic …

effects, low real wages and low unemployment are the result. With an intermediate view, i.e. when partial equilibrium effects … within a sector are taken into account, high real wages and unemployment result. If all general equilibrium effects are … simultaneously considered, we once again obtain a situation of low wages and unemployment. The assumption that unions and employers …

that the European unemployment problem can be traced back partially to insufficient recognition of general equilibrium …