Gern, Klaus-Jürgen; Meier, Carsten-Patrick; Scheide, … - 2003
assumptions. A policy of sustained wage moderation results in an increase in employment and potential output. Assuming that … faster, although the quantitative effect is relatively small. The long-run gain in employment would accrue regardless of a … coordination with monetary policy. According to the simulations, employment in Germany would increase by about 750,000 persons in …