The article discusses how wages and prices change over time in Germany and the U.S. The researchers created a new model that combines different ideas about how wages and prices adjust. They found that from 1973 to 1990, both countries had similar wage and inflation patterns, but Germany had no effect on prices from high unemployment like the U.S. did. In Germany, there was a growing gap between the job market and industrial capacity, leading to a higher unemployment rate needed for stable inflation compared to the U.S.