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The chapter restates Tarantelli’s approach to macroeconomic stabilisation and the role of wage bargaining institutions. It also discusses the patterns and variation in the institutional make-up of wage bargaining since 1980, documenting the evolution of the social pacts stipulated in Europe towards what Tarantelli called ‘decentralised corporatism’ and showing the institutional flexibility of collective agreements, as well as the stability of Tarantelli’s ‘marriage of opposites’.
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