Wage Moderation in Crises : Policy Considerations and Applications to the Euro Area /

The paper studies the impacts of wage moderation in the euro area. Simulation results show that if a single euro area crisis-hit economy undertakes wage moderation, the impact on output is positive for that economy and for the entire euro area. If all crisis-hit economies undertake wage moderation t...

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Detalles Bibliográficos
Autor principal: Decressin, Jorg
Otros Autores: Espinoza, Raphael, Halikias, Ioannis, Kumhof, Michael
Formato: Revista
Lenguaje:English
Publicado: Washington, D.C. : International Monetary Fund, 2015.
Colección:Staff Discussion Notes; Staff Discussion Notes ; No. 2015/022
Acceso en línea:Full text available on IMF
Descripción
Sumario:The paper studies the impacts of wage moderation in the euro area. Simulation results show that if a single euro area crisis-hit economy undertakes wage moderation, the impact on output is positive for that economy and for the entire euro area. If all crisis-hit economies undertake wage moderation together, their output still expands, albeit to a lesser degree. If the wage moderation is accompanied by cuts in policy interest rates by the central bank-and by quantitative easing once interest rates hit the zero lower bound-then output for the entire euro area expands as well.
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Descripción Física:1 online resource (36 pages)
Formato:Mode of access: Internet
ISSN:2617-6750
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