Wage Policies and Employment under Fixed and Flexible Exchange Rates. - Under flexible exchange rates moderate wage policies lead to increased employment via an interaction between profitability and real-balance effects. The employment increase, which results from a lower nominal wage increase,...

We are looking back to one of the most severe financial crises ever. The subprime crisis, as future generations may call it, was not just a crisis among others, but had a truly global dimension. There are still doubts whether the flames are really out, but in any case the recent crisis has...