Peripheral Europe's debt and German wages: the role of wage policy in the Euro area
AbstractThe paper argues that the Greek debt crisis, as well as those of other Southern European countries and Ireland, has to be seen in macroeconomic context. The sum of the public sector balance, the (domestic) private sector balance and the current account deficit (or equivalently: the capital inflows) has to add up to zero. By implication in a country that has a current account deficit either the private sector or the public sector has to run a deficit. Therefore, the peripheral countries can only solve their public debt problems if there is a change in German current account surpluses. The paper explores the implications of this for wage policy in the Euro zone.
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Bibliographic InfoArticle provided by Inderscience Enterprises Ltd in its journal Int. J. of Public Policy.
Volume (Year): 7 (2011)
Issue (Month): 1/2/3 ()
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Web page: http://www.inderscience.com/browse/index.php?journalID=97
Economic and Monetary Union; EMU; euro area; eurozone; European Union; EU; financial crises; single currency; currencies; sovereign debt; wage policies; wage coordination; Southern Europe; Germany; Greece; Ireland; macroeconomics; public sector; financial balances; domestic sector; private sector; current accounts; account deficits; capital inflows; peripheral countries; public debt; account surpluses; wages; Portugal; Italy; Spain; peripheral Europe; public policy; economic policies; alternative paradigms.;
Other versions of this item:
- Engelbert Stockhammer, 2011. "Peripheral Europe’s Debt and German Wages. The Role of Wage Policy in the Euro Area," Discussion Papers 29, Research on Money and Finance.
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Ingemar Lindberg: âSjunkande lÃ¶neandel har bidragit till krisenâ
by Debatt in Dagens Arena on 2012-03-14 00:30:53
- Alison Johnston & Bob Hancké & Suman Pant, 2013. "Comparative Institutional Advantage in the European Sovereign Debt Crisis," LEQS â LSE 'Europe in Question' Discussion Paper Series 66, European Institute, LSE.
- Hein, Eckhard, 2012.
"Finance-dominated capitalism, re-distribution and the financial and economic crises: A European perspective,"
IPE Working Papers
14/2012, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
- Hein, Eckhard, 2012. "Finance-dominated capitalism, re-distribution and the financial and economic crises - a European perspective," MPRA Paper 35903, University Library of Munich, Germany.
- Hubert Gabrisch & Karsten Staehr, 2012.
"The Euro Plus Pact: Competitiveness and external capital flows in the EU countries,"
Bank of Estonia Working Papers
wp2012-5, Bank of Estonia, revised 10 Dec 2012.
- Hubert Gabrisch & Karsten Staehr, 2012. "The Euro Plus Pact: Competitiveness and External Capital Flows in the EU Countries," Working Papers 324, Institut für Ost- und Südosteuropaforschung (Institute for East and South-East European Studies).
- Alison Johnston & Bob Hancké & Suman Pant, 2013. "Comparative Institutional Advantage in the European Sovereign Debt Crisis," Europe in Question Discussion Paper Series of the London School of Economics (LEQs) 6, London School of Economics / European Institute.
- Alison Johnston & Bob Hancké & Suman Pant, 2013. "Comparative institutional advantage in the European sovereign debt crisis," LSE Research Online Documents on Economics 53177, London School of Economics and Political Science, LSE Library.
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