This paper argues that rigid wages cannot provide the underpinnings of a universally valid theory of the business cycle …, simply because wages are not universally rigid. Several different statistical techniques suggest that wage rates in the U … greater flexibility in wages, these two countries also exhibit more stable employment behavior over the business cycle. In …

This paper studies the dynamic behavior of changes in productivity, wages, and prices. Results are based on a new data …. Europe has neither greater nominal wage flexibility nor more rigid real wages than the U. S. Evidence that the U. S. exhibits … bonus of extra output as a result of a uniquely vertical European aggregate supply curve. The analysis of real wages also …