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The book offers an explanation of unemployment based on a model of wage bargaining between a trade union and an … natural rate of unemployment is independent of productivity growth. Taxes on labour and capital are identified as important … German data confirms the theoretical predictions. Keywords: Unemployment ; Hysteresis ; Trade Unions ; Cointegration Contents …
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profession abandoned the Keynesian Phillips curve and adopted Milton Friedman's natural rate of unemployment (NRU) hypothesis …
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