Adjustment in the euro zone
29th May 2012The Bruegel centre has just published a contribution entitled "Arithmetic is absolute: euro-area adjustment". This contribution questions the possibility of a State or a group of States taking action on the cost of employment, and therefore on its inflation rate and competitiveness, without the inflation rate in other countries in the zone being modified. It also presents a certain number of conclusions regarding the relationship between labour cost variations and those of inflation.
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