We consider a dynamic general equilibrium model with collective wage bargaining and investigate how unemployment dynamics are affected by two types of budgetary policies. In line with traditional reasoning, a balanced-budget rule amplifies fluctuations in the short run, whereas an...

Introduction / Peter Auer -- Small-economy macroeconomics / Roland Schettkat -- Working time : from redistribution to modernization / Gerhard Bosch -- Equal opportunities and employment policies / Jill Rubery -- Industrial relations and social dialogue / Jelle Visser