Stockhammer, Engelbert; Sotiropoulos, Dimitris P. - Post Keynesian Economics Study Group - PKSG - 2012
This paper investigates the economic costs of Euro area rebalancing. Based on an old Keynesian model we estimate a current account equation, a wage-Phillips curve and an Okun’s Law equation. All estimations are carried out for a panel of eleven Euro area members (excluding Luxembourg). From...