This paper presents a model of employment, distribution and inflation in which a modern error correction specification of the nominal wage and price dynamics (referring to claims on income by workers and firms) occupies a prominent role. It is brought out, explicitly, how this rather typical...

This paper provides an analytical treatment of various long-run aspects of the MONA model as well as the SMEC model of the Danish economy. More specifically, the analysis lays bare the long-run and steady-state nexus between unemployment and, respectively, inflation and the wage share implied by...