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- W1529605593 abstract "We consider an intertemporal small open economy with unemployment and depressed investments due to a high real wage. As the required wage adjustment takes time, we investigate whether a devaluation easens the adjustment process. Concerning employment, we find that it is possible to achieve a high level in the entire adjustment process, assuming that the adjustment is non-cyclical. In the cyclical case, the cumulative employment effect per unit of capital is positive. In any case, the employment gain is achieved at the cost of lower productivity. Finally, a cycle in the current account seems likely." @default.
- W1529605593 created "2016-06-24" @default.
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- W1529605593 date "1989-01-01" @default.
- W1529605593 modified "2023-09-27" @default.
- W1529605593 title "Unemployment, Slowly Declining Wages, and Depressed Investments : Does it Help to Devalue?" @default.
- W1529605593 hasPublicationYear "1989" @default.
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