Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/187453 
Year of Publication: 
2017
Series/Report no.: 
ROME Discussion Paper Series No. 17-07
Publisher: 
Research On Money in the Economy (ROME), s.l.
Abstract: 
This paper reviews cases of successful price and wage adjustment, which are often regarded as constituting best practice, - Australia, Latvia and the German new states and contrasts them with the Greek experience under the Troika Programs. Latvia stands out as having had the quickest adjustment in wages. By contrast, before the crisis, Greek wages appeared to have been largely insensitive to labour market conditions but this changed with the program. We find that the reaction of wages to unemployment in Greece was under the program similar to that observed in Germany and Portugal (a case, which has attracted less attention). A priori it is likely that the change in wage behaviour in Greece was due to the labour market reforms imposed under the program. But this cannot be proven beyond doubt.
Subjects: 
Phillips curves
price and wage adjustment
internal devaluation
Australia
Greece
Latvia
Portugal
West vs. East Germany
JEL: 
E31
F49
Document Type: 
Working Paper

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