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 …

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 … Germany by implementing labor market reforms themselves constitute impediments to successful reforms. Reforms would relative …