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Monetary Union and Precautionary Labour-market Reform

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Author Info
Lars Calmfors ()
Abstract

The paper demonstrates that policy makers may have a precautionary motive to undertake more labour-market reform - and hence attain lower equilibrium unemployment - inside a monetary union than outside. The reason is a desire to reduce the utility cost of variations in employment when asymmetric shocks can no longer be stabilised through domestic monetary policy.

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File URL: http://www.cesifo-group.de/DocCIDL/174.pdf
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Publisher Info
Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number CESifo Working Paper No. 174.

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Date of creation: 1998
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Handle: RePEc:ces:ceswps:_174

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Related research
Keywords: Monetary Union; Asymmetric Shocks; Stabilisation Policy; Labour-Market Reform; Equilibrium Unemployment;

Find related papers by JEL classification:
E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
E69 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Other
F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
J29 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Other
J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Lars Calmfors, 2001. "Wages and Wage-Bargaining Institutions in the EMU – A Survey of the Issues," Empirica, Springer, vol. 28(4), pages 325-351, December. [Downloadable!] (restricted)
  2. Jordahl, Henrik & Laséen, Stefan, 1999. "Central Bank Conservatism and Labor Market Reform," Working Paper Series 1999:23, Uppsala University, Department of Economics. [Downloadable!]
    Other versions:
  3. M. Burda, . "European Labor Markets and the Euro: How Much Flexibility Do We Really Need?," Sonderforschungsbereich 373 1999-41, Humboldt Universitaet Berlin.
    Other versions:
  4. repec:fth:prinin:424 is not listed on IDEAS
  5. Calmfors, Lars, 2001. "Wages and wage-bargaining institutions in the EMU – a survey of the issues," Seminar Papers 690, Stockholm University, Institute for International Economic Studies. [Downloadable!]
Statistics
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This page was last updated on 2009-12-1.


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