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 InfoPaper provided by Research on Money and Finance in its series Discussion Papers with number 29.
Date of creation: 2011
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Other versions of this item:
- Engelbert Stockhammer, 2011. "Peripheral Europe's debt and German wages: the role of wage policy in the Euro area," International Journal of Public Policy, Inderscience Enterprises Ltd, vol. 7(1/2/3), pages 83-96.
- NEP-ALL-2011-03-26 (All new papers)
- NEP-CBA-2011-03-26 (Central Banking)
- NEP-EEC-2011-03-26 (European Economics)
- NEP-PKE-2011-03-26 (Post Keynesian Economics)
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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
- Hein, Eckhard, 2012.
"Finance-dominated capitalism, re-distribution and the financial and economic crises - a European perspective,"
35903, University Library of Munich, Germany.
- 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).
- Hubert Gabrisch & Karsten Staehr, 2012.
"The Euro Plus Pact: Competitiveness and External Capital Flows in the EU Countries,"
324, Institut für Ost- und Südosteuropaforschung (Institute for East and South-East European Studies).
- 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.
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