One Country, One Vote? Labor Market Structure and Voting Rights in the ECB
AbstractThe pending enlargement of the European Monetary Union (EMU) has brought to the fore the discussion of the voting right distribution in the European Central Bank (ECB) council. We show that, in a model where labor unions internalize the inflationary consequences of wage setting, deviating from a voting scheme based purely on economic size can be beneficial. Preliminary evidence on unemployment and voting rights in the ECB council seems broadly in line with this idea. We also point to possible policy implications for EMU enlargement and ECB restructuring.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 1165.
Date of creation: 2004
Date of revision:
monetary policy; wage setting; European Monetary Union; European Central Bank; euro area; ECB reform; EMU enlargement; accession countries;
Other versions of this item:
- Berger, Helge & Hefeker, Carsten, 2005. "One Country, One Vote? Labor Market Structure and Voting Rights in the ECB," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 20, pages 672-687.
- Berger, Helge & Hefeker, Carsten, 2004. "One country, one vote? Labor market structure and voting rights in the ECB," Discussion Papers 2004/10, Free University Berlin, School of Business & Economics.
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-05-09 (All new papers)
- NEP-IFN-2004-05-09 (International Finance)
- NEP-MON-2004-05-09 (Monetary Economics)
- NEP-POL-2004-05-09 (Positive Political Economics)
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