Forslund, Anders; Gottfries, Nils; Westermark, Andreas - 2006
How are wages set in an open economy? What role is played by demand pressure, international competition, and structural … factors in the labour market? How important is nominal wage rigidity and exchange rate policy for the evolution of real wages … and competitiveness? To answer these questions, we formulate a theoretical model of wage bargaining in an open economy and …