Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/21566
Authors: 
Truger, Achim
Schulten, Thorsten
Hein, Eckhard
Year of Publication: 
2004
Series/Report no.: 
WSI-Diskussionspapiere 124
Abstract: 
Based on a post-Keynesian model of the relationship between wages, prices and employment, this paper begins by studying the extent to which unit labour cost trends have been responsible for disinflation and deflationary tendencies in Germany and Europe. Thereafter, the reasons for the deflationary development of unit labour costs in recent years, in particular in Germany, are analysed. Finally, the impact of deflationary wage policies on German and European stagnation are discussed and it is concluded that the excessive wage restraint in Germany not only exacerbates stagnation and deflationary tendencies in Germany but might also have a deflationary impact on the other EMU countries.
Subjects: 
Wage trends
deflation
collective bargaining
JEL: 
E50
E31
Document Type: 
Working Paper

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