IDEAS home Printed from https://ideas.repec.org/p/hal/spmain/hal-03393221.html
   My bibliography  Save this paper

Politique économique aux Etats-Unis et croissance du chômage en Europe

Author

Listed:
  • Jean-Paul Fitoussi

    (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po)

  • Edmund Phelps

    (Center on Capitalism and Society - Columbia University [New York])

Abstract

Why the American recovery of the years 1983 and 1984 did not produce recovery in Europe ? Why unemployment on this side of the Ocean has continued rising to reach in 1985 levels that have not been seen since the Great Depression ? Why finally the prospect of recovery which follows the fall of the dollar and the price of oil is so mediocre ? Conventional macroeconomic theory does not allow to answer those questions. The reasons could be that the variations of exchange rates and real rates of interest were in the eighties so important that they had no equivalent since world war two. The article provides a reconstruction of open macroeconomics to cope with the unusual features of recent developments. It is then possible to explain how and why the shifts in the beginning of the eighties in the US monetary-fiscal stance have operated to contract employment in Europe. This result comes from the consideration of the many supply side transmission mechanisms, heretofore unnoticed, that must have been actuated by the american policy mix mainly through the channel of the real interest rates but also through the unprecedent real depreciation of European currencies. The remaining part of the rise of unemployment in Europe is explained by a reexamination of Europe's own policies.

Suggested Citation

  • Jean-Paul Fitoussi & Edmund Phelps, 1987. "Politique économique aux Etats-Unis et croissance du chômage en Europe," SciencePo Working papers Main hal-03393221, HAL.
    • Handle: RePEc:hal:spmain:hal-03393221
    DOI: 10.3406/ofce.1987.1086
    Note: View the original document on HAL open archive server: https://hal-sciencespo.archives-ouvertes.fr/hal-03393221
    as

    Download full text from publisher

    File URL: https://hal-sciencespo.archives-ouvertes.fr/hal-03393221/document
    Download Restriction: no
    File URL: https://libkey.io/10.3406/ofce.1987.1086?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Feldstein, Martin, 1986. "U.S. Budget Deficits and the European Economies: Resolving the Political Economy Puzzle," American Economic Review, American Economic Association, vol. 76(2), pages 342-346, May.
    2. Hall, Robert E, 1988. "The Relation between Price and Marginal Cost in U.S. Industry," Journal of Political Economy, University of Chicago Press, vol. 96(5), pages 921-947, October.
    3. Edmund S. Phelps, 1986. "The Significance of Customers Markets for the Effects of Budgetary Policy in Open Economies," Annals of Economics and Statistics, GENES, issue 3, pages 101-117.
    4. Jeffrey Sachs, 1986. "High Unemployment in Europe: Diagnosis and Policy Implications," NBER Working Papers 1830, National Bureau of Economic Research, Inc.
    5. Olivier J. Blanchard & Lawrence H. Summers, 1984. "Perspectives on High World Real Interest Rates," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 15(2), pages 273-334.
    6. Phelps, Edmund S, 1978. "Commodity-Supply Shock and Full-Employment Monetary Policy," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 10(2), pages 206-221, May.
    7. Jacques Le Cacheux & Christian Vasseur, 1985. "Endettement extérieur et politique économique," Revue de l'OFCE, Programme National Persée, vol. 13(1), pages 149-184.
    8. repec:adr:anecst:y:1986:i:3:p:04 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:hal:spmain:info:hdl:2441/5386 is not listed on IDEAS
    2. Henri Sterdyniak & Éric Bleuze, 1988. "L'interdépendance des économies en change flexible : les apports d'une maquette dynamique," Revue Économique, Programme National Persée, vol. 39(5), pages 999-1034.
    3. Eric Bleuze, 1988. "L'interdépendance des économies en change flexible : les apports d'une maquette dynamique," Post-Print hal-01304325, HAL.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:hal:spmain:info:hdl:2441/5951 is not listed on IDEAS
    2. Jean-Paul Fitoussi & Jacques Le Cacheux, 1989. "Une théorie des années quatre-vingt," Revue de l'OFCE, Programme National Persée, vol. 29(1), pages 117-160.
    3. Rachel McCulloch, 1988. "Macroeconomic Policy and Trade Performance: International Implications and U.S. Budget Deficits," NBER Chapters, in: Issues in US-EC Trade Relations, pages 349-370, National Bureau of Economic Research, Inc.
    4. repec:hal:spmain:info:hdl:2441/5953 is not listed on IDEAS
    5. Raper, Kellie Curry & Love, H. Alan, 1999. "MONOPSONY POWER IN MULTIPLE INPUT MARKETS: A Nonparametric Approach," Staff Paper Series 11656, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    6. Vallés, Javier & Salas Fumás, Vicente & San Juan, Lucio, 2022. "Corporate economic profits in the euro area: The relevance of cost competitive advantage," International Review of Economics & Finance, Elsevier, vol. 80(C), pages 569-585.
    7. Alvaro Montenegro García, 2007. "Fundamentos de la política de la competencia," Documentos de Economía 3930, Universidad Javeriana - Bogotá.
    8. Borota Milicevic, Teodora & Carlsson, Mikael, 2016. "Markups from Inventory Data and Export Intensity," Working Paper Series 2016:9, Uppsala University, Department of Economics.
    9. Blonigen, Bruce A. & Liebman, Benjamin H. & Pierce, Justin R. & Wilson, Wesley W., 2013. "Are all trade protection policies created equal? Empirical evidence for nonequivalent market power effects of tariffs and quotas," Journal of International Economics, Elsevier, vol. 89(2), pages 369-378.
    10. Juan Carlos Echeverry, 1998. "Price Setting In The Argentine And Colombian Manufacturing Industry," Borradores de Economia 3369, Banco de la Republica.
    11. Gaffeo, Edoardo, 2011. "The distribution of sectoral TFP growth rates: International evidence," Economics Letters, Elsevier, vol. 113(3), pages 252-255.
    12. Kevin X. D. Huang & Zheng Liu, 1999. "Chain of Production as a Monetary Propagation Mechanism," Cahiers de recherche CREFE / CREFE Working Papers 106, CREFE, Université du Québec à Montréal.
    13. Elmendorf, Douglas W. & Gregory Mankiw, N., 1999. "Government debt," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 25, pages 1615-1669, Elsevier.
    14. Ardagna Silvia & Caselli Francesco & Lane Timothy, 2007. "Fiscal Discipline and the Cost of Public Debt Service: Some Estimates for OECD Countries," The B.E. Journal of Macroeconomics, De Gruyter, vol. 7(1), pages 1-35, August.
    15. repec:dgr:rugggd:gd-79 is not listed on IDEAS
    16. Sharon Kozicki & Peter A. Tinsley, 2002. "Alternative sources of the lag dynamics of inflation," Research Working Paper RWP 02-12, Federal Reserve Bank of Kansas City.
    17. Aurélien Goutsmedt, 2021. "From the Stagflation to the Great Inflation: Explaining the US economy of the 1970s," Revue d'économie politique, Dalloz, vol. 131(3), pages 557-582.
    18. Lundin, Magnus & Gottfries, Nils & Lindström, Tomas, 2004. "Price and Investment Dynamics: An Empirical Analysis of Plant Level Data," Working Paper Series 2004:7, Uppsala University, Department of Economics.
    19. Békés, Gábor & Hornok, Cecília & Muraközy, Balázs, 2016. "Globalization and the markups of European firms," Kiel Working Papers 2044, Kiel Institute for the World Economy (IfW Kiel).
    20. Kosuke Aoki & Yoshihiko Hogen & Kosuke Takatomi, 2023. "Price Markups and Wage Setting Behavior of Japanese Firms," Bank of Japan Working Paper Series 23-E-5, Bank of Japan.
    21. Juan J. Dolado & Salvador Ortigueira & Rodolfo Stucchi, 2016. "Does dual employment protection affect TFP? Evidence from Spanish manufacturing firms," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 7(4), pages 421-459, November.
    22. Sabien Dobbelaere & Jacques Mairesse, 2010. "Comparing Micro-evidence on Rent Sharing from Three Different Approaches," NBER Working Papers 16220, National Bureau of Economic Research, Inc.
    23. Weitzman Nagar, 2007. "Asymmetry in Monetary Policy: An Asymmetric Objective Function and a New-Keynesian Model," Bank of Israel Working Papers 2007.02, Bank of Israel.

    More about this item

    Keywords

    Politique économique; Chômage;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:spmain:hal-03393221. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Contact - Sciences Po Departement of Economics (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.