Quarterly Journal of Austrian Economics
Author:
Thomas Mayer
Gunther Schnabl
Online Publish Date:
unemployment has declined to a very low level, the negotiating power of labor unions strengthens and wages rise. Enterprises have to lift prices to cover their as observed during the 2003–07 US subprime boom and the boom in the southern European countries during the same time period. When rising wages force enterprises allocation of resources, as can be observed in Japan and increasingly in Europe. These effects have become even further magnified by the policy responses to