The fluctuation in value of gold and silver, it is worth remembering, allowed for greater wage flexibility
, and thus less unemployment.
A further issue related to the monetary union implementation is wage flexibility
. Einaudi is conscious of the fact that with the adoption of a single currency, monetary policy could be more advantageous for some countries than for others.
In "Wage flexibility
and employment fluctuations: evidence from the housing sector," Jorn-Steffen Pischke analyzes the impact of the housing market cycle on wages and employment for three occupations--real estate agents, architects, and construction workers.
"Labor mobility and relative wage flexibility
in parts of the segmented labour market provide adjustment means from a political economy perspective.
Peter Blair Henry and Conrad Miller (2009) note, for example, that in addition to exchange rate policy, the existence of growth-facilitating policies, fiscal discipline, openness to trade, and wage flexibility
were important determinants of the superior performance of some of the fixed exchange rate countries in the region.
In line with Gregg et al., their findings point to greater wage flexibility
in the United Kingdom as being one of the key factors in explaining the weakness of productivity since the financial crisis.
has played a role, albeit somewhat limited, in facilitating the labour market adjustment since the onset of the crisis, with a substantial proportion of the reduction in the wage bill achieved by cutting employment.
This and improved wage flexibility
are helping to restore the competitiveness of the Greek economy.
Most members of Congep operate in Regions 3, 4A, 4B, and 7, where Congep is discussing possible wage flexibility
with the Department of Labor and Employment (DOLE).
To determine more systematically whether the usual intuition that wage rigidities undermine efficiency is correct, or whether our earlier results are more reliable, we analyze more thoroughly the interdependency of wage flexibility
and employment duration.
In particular, there have been no major institutional changes in order to promote numerical or wage flexibility
Nevertheless, he sees indexation as a major source of inflationary difficulties, and endorses attempts by 1980s Boards to introduce a degree of wage flexibility
, even while recognising the need for a living minimum.