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This paper takes a first step in analysing how a monetary union performs in the presence of labour market asymmetries. Differences in wage flexibility, market power and country sizes are allowed for in a setting with both country-specific and aggregate shocks. The implications of asymmetries for...
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manufactured exports in total, and to industrial sectors. An empirical analysis based on data across countries, industrial sectors … and time shows that the Danish manufactured exports are less sensitive to changes in wage competitiveness than that of our …
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