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. cost and wage vs. employment adjustments in response to cost-push shocks depend – in theoretically sensible ways – on the … institutional features of firms and of their environment. Focusing on the passthrough of cost shocks to prices, our results suggest …
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This paper analyzes the effects of different labor market institutions on inflation and output volatility. The eurozone offers an unprecedented experiment for this exercise: since 1999, no national monetary policies have been implemented that could account for volatility differences across...
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