In the Fisher hypothesis time preferences of the public and technological constraints determining the return on real investment which is assumed to be constant 24 . So the nominal rate moves with inflation. The Fisher equation can be used in either ex ante (before) or ex post (after) sense.
What are the pertinent facts about the evolution and dispersion of ULC in the euro area? On average, unit labour cost in the euro area has increased at a moderate pace in recent years, largely thanks to subdued wage developments in Germany. However, unit labour costs have grown at significantly different rates across the euro area countries (see slide 5).