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8 Note: The Figure shows the adjustment of real GDP in the euro area to a US demand shock under three different assumptions about the transmission mechanisms, cf. the main text. INTERLINK simulation. The assumptions adopted for these simulations are obviously rough-andready but they nevertheless illustrate the potential importance of non-trade linkages. With only the trade channel in operation, the required short-term interest rate reduction in the euro-area peak at 125 basis points. As is the case for the United States, long rates are assumed to be reduced by half this amount.

Real wages and prices), the business cycle properties vary considerably with the detrending methods used. There is little evidence to support a (supply driven) real business cycle. In the post-war period, the comovement between output and prices is positive in the short run and negative in the long run, consistent with a model where demand shocks dominate in the short run and supply shocks dominate in the long run. The sign and strength of correlations between output and prices (or wages) are very sensitive to the methods used to calculate them.

07 32 32 32 32 32 30 30 30 30 30 28 28 28 28 28 26 26 26 26 FIN NLD ITA ESP FRA PRT GER Investment 26 GRC 24 24 24 PRT FIN 22 IRE 22 22 AUT GRC IRE ITA ESP FRA BEL 22 24 Investment 28 Investment AUT 22 GER 24 NLD 22 GRCFIN GER 20 AUT ESP 24 NLD 20 26 PRT 20 20 20 FRA ITA BEL 20 BEL IRE 18 16 20 30 Saving 18 18 16 16 20 30 Saving 18 18 16 16 18 20 30 16 Saving 1. The sample consists of 21 OECD countries: United States, Japan, Germany, France, Italy, United Kingdom, Canada, Australia, Austria, Belgium, Denmark, Finland, Greece, Ireland, Netherlands, New Zealand, Norway, Portugal, Spain, Sweden and Switzerland.

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A Stakeholder Approach to CSR

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