Abstract
Recently the issue of international policy coordination has been a major topic in the literature. Mostly Europe is treated as one bloc and characterized by real wage rigidity (RWR). In this paper it is shown that this may be too simple and lead to counter-productive policy conclusions. Relaxation of the RWR assumption reverses the policy conclusions. More specifically, if one allows for regional differences within Europe and for the dependence of the indexation mechanism on the level of actual inflation the conclusions on policy coordination may be more realistic.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
