Many of the recent attempts to find evidence of downward nominal wage rigidity in micro data have suffered from a number of problems, including composition bias and the effects of measurement error. In order to avoid these problems we explicitly model the determinants of wage changes and the...

We assess to what extent wage inflation policies in Germany could contribute to an economic rebalancing in the euro area and the rest of the world. We find that a rise in nominal wage inflation has positive short-run effects on inflation and output in Germany and the rest of the euro area. The...

In a previous paper in this journal (Headey et al., 2000) a comparison was made between three so-called ‘best cases’ of welfare regime types, the ‘Liberal’ US, ‘the ‘Corporatist’ Germany and the ‘Social-Democratic’ Netherlands. That paper was based on the ten-year datasets...

The creation of EMU raises the question whether the common monetary policy has the same impact in all member countries. We analyse the convergence of interest rates in four major EMU countries from 1999 to 2007. We suggest to test the convergence of the interest rates with the full term...