Abstract
Ever since the days of Keynes, economists have been puzzled by the behavior of wages. In the classical macroeconomic system, real wages were supposed to clear the labor market. Yet real wage rates were only slightly reduced by the massive and persistent unemployment during the depression. It is true that nominal wage rates fell, but prices fell in roughly the same proportion.
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© 1986 The Scandinavian Journal of Economics
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Gylfason, T., Kierzkowski, H. (1986). Comment on T. Hersoug, “Workers vs. Government—Who Adjusts to Whom?”. In: Calmfors, L., Horn, H. (eds) Trade Unions, Wage Formation and Macroeconomic Stability. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-08596-5_9
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DOI: https://doi.org/10.1007/978-1-349-08596-5_9
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-08598-9
Online ISBN: 978-1-349-08596-5
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