Two issues; the liberalisation of labour markets and monetary unification, have taken centre stage in policy debates on the future of the European Union. We show that both have the effect of raising capital mobility as well as labour-market flexibility. The reduction of exchange-rate...

We establish some stylised facts for Germany's business cycle at the level of the firm. Based on longitudinal firm-level data from the Bundesbank's balance sheet statistic covering, on average, 55,000 firms per year from 1971 to 1998, we analyse the reallocation across individual producers and,...