Suchergebnisse

This paper traces the euro zone's inadequate macroeconomic performance in recent years back to the predominance of a restrictive macroeconomic policy mix based on a 'new monetarist' approach to economic policy. An approach based on a (post-)Keynesian analysis is presented as a growth and employment-oriented alternative to this restrictive policy mix. Contrary to the strict assignment of macroeconomic goals to the macroeconomic policy actors and their instruments in the 'new monetarist' approach, the alternative requires the coordination of monetary, fiscal and wage policies in order to achieve growth, high employment and price stability. The paper examines the opportunities for and the obstacles to macroeconomic co-ordination given by the institutional framework of the European Monetary Union.

GLOBAL ECONOMIC INTERDEPENDENCE HAS CREATED INCENTIVES FOR GREATER INTERNATIONAL ECONOMIC CO-OPERATION. IN MANY INSTANCE, THESE INCENTIVES HAVE LED STATES TO ACCEPT IMPORTANT AND CONTROVERSIAL CO-OPERATIVE AGREEMENTS, DESPITE THEIR COSTS. A CRUCIAL FORM OF CONTEMPORARY INTERNATIONAL ECONOMIC POLICY CO-OPERATION IS THE DEVELOPMENT OF REGIONAL PATTERNS OF ECONOMIC INTEGRATION, EXEMPLIFIED BY THE NAFTA ACCORD AND THE MAASTRICHT TREATY ON EUROPEAN MONETARY UNION (EMU). WHY DID COUNTRIES CHOOSE TO CO-OPERATE IN NAFTA AND THE EMU, ESPECIALLY GIVEN THE COSTS? THIS QUESTION IS ADDRESSED IN THREE PARTS. FIRST, WHY DID POLITICAL LEADERS INITIATE THESE NEGOTIATIONS? GIVEN THE COSTS OF SUCH FAR-REACHING ACCORDS, WHY WERE LEADERS INTERESTED IN PURSUING THEM? THE SECOND ISSUE IS WHY WERE THE COUNTRIES ABLE TO REACH AGREEMENT? A NUMBER OF FACTORS, SUCH AS THE END OF THE COLD WAR AND THE ECONOMIC DIFFICULTIES EXPERIENCED BY THE ADVANCED INDUSTRIAL COUNTRIES AFTER 1987, COULD HAVE UNDERMINED SUCH CO-OPERATION. FINALLY, WHAT MADE DOMESTIC RATIFICATION POSSIBLE? POLITICAL LEADERS WHO NEGOTIATE NAFTA AND EMU HAD TO OBTAIN DOMESTIC APPROVAL FROM THEIR LEGISLATURES OR ELECTORATES. RATIFICATION PROVED TO BE A PROBLEM IN BOTH AGREEMENTS.

This book gives a clear insight into the EC's efforts to reduce regional inequalities in Europe, assessing the effectiveness of key EC policies such as the structural funds. It also analyses regional income disparities within the EC, the effects of economic integration on Europe's poorer areas and the strategic options of the less-developed regions and countries in Europe. The effects of the Single Market, the Common Agricultural Policy and Economic and Monetary Union (EMU) on poorer EC areas are also evaluated.

In this book, internationally renowned scholars, including two Nobel Laureates, have been drawn together to celebrate Arnold Heertje's rich contribution to the field of economics. Their essays reflect his influence in the areas of economic theory and policy. In particular, they follow in the tradition of his work on oligopoly and price theory, welfare theory and policy, growth theory, environmental economics, technical change and the history of economic thought and methodology. The contributors offer penetrating insights into the structure and functioning of different types of market structures and the character of technical change. In addition, they address current topics such as the recent problems in East Asian economies, the money supply in the European Monetary Union and economic development. Finally, they pay tribute to Arnold Heertje's work on the history of economic thought, discussing the writings of David Ricardo, the German historical school, Herbert Robinson, Alfred Marshall and Herbert Foxwell. This book will attract economic theorists, and scholars and students who are interested in the history of economic thought or in empirical subjects such as the policy implications of studies of labour markets, property rights and European Monetary Union

Abstract
This paper shows that job polarisation—i.e., the disappearance of routine jobs—is changing the characteristics of the labour market. This has structural implications for the relationship between inflation and unemployment, the price Phillips curve. Using data from the European Monetary Union and exploiting the fact that job polarisation accelerates during recessions, we obtain two empirical results. First, countries experiencing a bigger shift in the occupational structure during a downturn exhibit a flatter Phillips curve afterwards. Second, the occupational shifts experienced during the Great Recession and the Sovereign Debt Crisis explain more than a fourth of the flattening of the curve in the 2002–18 period. Then, using a New Keynesian model with unemployment and search and matching frictions, we highlight a channel through which labour market characteristics operate on the slope of the Phillips curve. Increasing labour market fluidity—i.e., a higher separation and hiring rate—decreases the slope of the Phillips curve. Using micro-data, we find that in the European Monetary Union non-routine jobs are more fluid. We conclude that job polarisation flattened the Phillips curve.

There is widespread concern in the European Monetary Union (EMU) about the sustainability of public finances in a number of member states. In the wake of the financial crisis, their public debt has increased dramatically. Rating agencies have already downgraded some countries' credit ratings, and markets are reacting with higher risk premiums. It is not impossible that certain countries will become insolvent - which could make it necessary for others to assume their debts. This situation has reignited debate on the reform of the Stability and Growth Pact. Yet, as the repercussions of the global crisis show, relying on the rules controlling public deficits and debt may not be enough to prevent the insolvency of member states. Excessive external imbalances of some countries pose a serious danger to the stability of the European Monetary Union. These deficits need to be monitored on the European level in order to mitigate risks as early as possible. An 'External Stability Pact' could provide an effective framework for this, complementing the existing body of EMU regulations. Adherence to the provisions of the pact should be made a condition for future enlargements of the Euro zone

Turmoil in euro area once more forces EU authorities to rethink future of further monetary integration. One of the most commonly used criterions for successful monetary in contemporary research is business cycle synchronization (BCS). Though BCS has been vastly described at country level, not as much attention has been put on the degree of BSC at regional level. Topic is important for 2 main reasons. The first is that determining degree of BCS at regional level can help in assessment of monetary policy effectiveness at country level, as well as giving point of reference for evaluation of perspective costs of participation in monetary union. The second is that there is theoretical dispute within the optimum currency areas literature between 'European Commission' and 'Krugman' view that can be resolve a great deal trough regional analysis. In order to assess BCS in EU Hodrick-Prescott, as well as Christiano and Fitzgerald filter to time series of real GDP for 24 countries, 82 NUTS 1, 242 NUTS 2 and 1264 NUTS 3 regions over the period of 1998-2010. Data was later used to create bilateral measures of BSC, which gave 276 observations on country level, 3321 on NUTS 1, 29161 on NUTS 2 and 798216 on NUTS 3 level. Results of the analysis support 'European Commission' view and show very high degree of BSC within EU countries. Country level analysis also reveals that within the EU there exist group of countries that could form effectively working monetary union based on BCS criterion.

AbstractHow fast should the new Member States of the European Union (NMS) relinquish their domestic monetary and exchange rate autonomy? While the Maastricht convergence criteria are attracting significant attention (particularly the inflation and deficit criteria), we think the debate should also examine the status of their economic structures and the progress of integration within the EU. Diverse aspects of the monetary integration of the NMS into the euro area are examined. We find less structural convergence is associated with less income convergence. The exchange rate regimes have a bearing on the speed of real convergence: for some NMS, and for some more time, exchange rate flexibility may still serve as a useful shock absorber.

While inflation differentials in a monetary union can be benign, reflecting a catch-up process, or an adjustment mechanism to asymmetric shocks or different business cycles, they may also indicate distortions related to inefficiencies in domestic product and labor markets that amplify or make more persistent the impact of shocks on inflation. The paper examines the determinants of inflation differentials in the euro area, with emphasis on the role of country specific labor and product market institutions. The analysis uses a traditional backward-looking Phillips curve equation and augments it

This paper deals with the connections between European Economic and Monetary Union on the one hand, and the prospects for employment and social cohesion on the other. It describes the thinking of the ETUC on EMU and explains why the ETUC has been supportive of monetary integration, and the reservations which it has expressed. The paper criticises the Maastricht Treaty's almost exclusive focus on stability, and discusses the pros and cons of the convergence criteria. It reports on the discussion at national level in a number of countries about EMU and employment and social cohesion, considers the political motivations driving EMU and concludes by stressing the importance of progress on the ETUC's agenda of accompanying policies for EMU.

This article gives analytical priority to the state and explores the utility of such an approach when it comes to understanding British policy towards the Euro. It combines the work of the British political scientist, Jim Bulpitt, with that of the US scholar, Eric Nordlinger, and asserts that this union can help reveal a neglected aspect of the 'story' behind this non-decision. The Blair Government rejected single currency membership because it perceived eurozone structures to be a threat to its governing autonomy. This administrative discretion was important in its own right, as well as a means for delivering other policies thought crucial to the party's electoral success. This argument is not incompatible with other explanations that stress the role of the Eurosceptical media or public opinion. But it does assert that the motives and behaviour of Blair, Brown and their close colleagues were not decisively constrained by these pressures. Adapted from the source document.

Abstract. The economy of the European Union has not recovered from the impact of the economic and financial crisis. Growth rates remain low and investment activity is weak. This questions current economic policies of the Economic and Monetary Union, known as austerity. In opposition to fiscal contraction measures, expansive fiscal action policies are often called for to initiate economic recovery. But the national interests of austerity's main proponent, performed in an asymmetric intergovernmental bargaining arena, render most of the proposed expansive action plans impossible and hence austerity is expected to prevail. The Juncker-Plan constitutes an expansive action plan which respects the restrictive budgetary rules. Nevertheless an investment volume of 315 billion Euro should be made available, enabled by 21 billion Euro of public money. The budget contribution should lever private funds by a multiplier of 15. The crucial factor of 15 rests on experience with Synergetic Financial Instruments which have been increasingly executed during the last budget period. This work assesses the impact of expansive public investment conducted through these Synergetic Financial Instruments and thus gathers information to undertake an appraisal of the Juncker-Plan, foremost of its crucial mechanisms and resulting numbers. By this, the potential of financial instruments as means of fiscal policy and the validity of the Juncker-Plan can be assessed.Keywords. Economic and Monetary Union, austerity, fiscal policy, public investment, financial instruments, Juncker-Plan, European Fund for Strategic Investment.JEL. G23, E61, E62, E65, G01, G11, H62, H63.

This paper attempts to investigate how the Maastricht criteria and the Stability and Growth Pact (SGP) have impaired the capacity of Euro Zone (EZ) national authorities to conduct discretionary fiscal policy. We estimate fiscal determinants for the structural (discretionary) public deficit over the period of 1981-2010, estimating panel data equations in order to increase the strength of the test by enhancing the time series dimension of the data by the cross section. We find that the degree of the countrecyclicality of discretionary fiscal policy has been reduced significantly after the Maastricht Treaty. Also, there is empirical evidence that national fiscal rules have a significant positive impact in budgetary outcomes. Regarding the recent reform of the European governance framework, we consider that the context of the reform seems incapable of dealing with the factors which are responsible for the sovereign debt crisis. We stress the need for reforms in the financial sector which seem necessary to ensure in association with sound fiscal policies the stability in euro area. ; peer-reviewed