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Using a newly constructed macroeconometric model for Germany and the rest of the Euro area, we investigate the … macroeconomic effects of structural labor market reforms in Germany. We find that neither the fact that Germany can no longer pursue … an independent monetary policy nor the possibility that other countries in the Euro area might react to reforms in …
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conditions in the euro area, we analyze what could be gained from a combination of wage policy and monetary policy. Using a small … coordination with monetary policy. According to the simulations, employment in Germany would increase by about 750,000 persons in … example: If the social partners in a large country such as Germany give a credible signal that wage increases will be moderate …
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model is constructed that models the euro area as consisting of two regions, Germany and the rest of the euro area. The rest … monetary policy or of exchange rate changes on economic activity in Germany and the euro area. …Since the start of European monetary union, the macroeconomic situation in Germany can in many respects only be …
Persistent link: https://www.econbiz.de/10010265489
Using a newly constructed macroeconometric model for Germany and the rest of the Euro area, we investigate the … macroeconomic effects of structural labor market reforms in Germany. We find that neither the fact that Germany can no longer pursue … an independent monetary policy nor the possibility that other countries in the Euro area might react to reforms in …
Persistent link: https://www.econbiz.de/10010272958
This paper presents a positive model which shows that institutional setups on capital and labor markets might be intertwined by politicoeconomic forces. Two politicoeconomic equilibria arise from our model, one with little protection of insiders on capital and labor markets, and another one with...
Persistent link: https://www.econbiz.de/10003886503