Bank of Italy paper examines Italian labour market adjustments

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A Bank of Italy paper published on Friday examines adjustments to Italy's labour market in the aftermath of the financial crisis.

Silvia Fabiani and Roberto Sabbatini, the paper's authors, use survey data carried out in 17 European countries to analyse wage adjustments by Italian firms. Fabiani and Sabbatini say the role played by wage and price adjustment in the transmission of monetary policy to the real economy is particularly important in a multi-country monetary union with still segmented

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