increase in their prices and in German wages. This mechanism is magnified by the low price elasticity of the demand for German …We develop a model which shows that wages, prices and real income should grow faster in countries with low increase in … the case of Germany, which has displayed a significantly lower increase in its labour force than its trade partners …

Germany, as most other European countries, has been plagued by a persistently high level of long-term unemployment … level of long-term unemployment in Germany relative to the United States? …