Does EMU Promote Labor-Market Reforms?
This paper discusses whether European Monetary Union (EMU) will promote labor-market reforms. Labor-market reforms carry a double dividend: not only structural unemployment but also equilibrium inflation is decreased. However, with labor-market reforms being implemented nationally, the latter effect is not present in EMU so that EMU does not work in favor of labor-market reforms. This result is reinforced by the existence of nominal rigidities. A contrary effect arises if EMU itself increases structural unemployment. Yet, this positive effect of EMU on labor-market reforms is compromised if it is caused by the possibility for participating countries to produce negative fiscal externalities. Copyright 1998 by WWZ and Helbing & Lichtenhahn Verlag AG
Year of publication: |
1998
|
---|---|
Authors: | Berthold, Norbert ; Fehn, Rainer |
Published in: |
Kyklos. - Wiley Blackwell, ISSN 0023-5962. - Vol. 51.1998, 4, p. 509-36
|
Publisher: |
Wiley Blackwell |
Saved in:
Saved in favorites
Similar items by person
-
Die zehn Gebote der Arbeitsmarktpolitik
Berthold, Norbert, (1998)
-
Unemployment in Germany: reasons and remedies
Berthold, Norbert, (2000)
-
Berthold, Norbert, (1999)
- More ...