Abstract
In sections 4 until 6, we shall discuss the stability of the long-run equilibrium. In addition, we shall trace out the process of adjustment released by various macroeconomic shocks. In doing this, it will prove useful to distinguish between flexible, fixed and slow money wages. To begin with, in the current section, we shall postulate flexible money wages. Strictly speaking, as a response to a shock, money wages adjust continuously so as to clear the labour market at all times.
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© 1992 Physica-Verlag Heidelberg
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Carlberg, M. (1992). Flexible Money Wages. In: Monetary and Fiscal Dynamics. Studies in Contemporary Economics. Physica-Verlag HD. https://doi.org/10.1007/978-3-642-47689-1_19
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DOI: https://doi.org/10.1007/978-3-642-47689-1_19
Publisher Name: Physica-Verlag HD
Print ISBN: 978-3-7908-0619-9
Online ISBN: 978-3-642-47689-1
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