IDEAS home Printed from https://ideas.repec.org/a/eee/worbus/v37y2002i3p208-215.html

Living with the Euro: the consequences for world business

Author

Listed:
  • Whyman, Philip

Abstract

This paper evaluates the impact Economic and Monetary Union (EMU) will have upon world business. The impact upon the European business environment includes potential benefits of a low inflation, low interest rate zone, contrasted with problems of incomplete prior convergence and a deflationary bias at the heart of the EMU model. 'Micro' consequences include intensified competitive pressures, completion of the single market and industrial restructuring, tensions in labour relations between supra-national corporatism and decentralised flexibilisation, the impact of Foreign Direct Investment (FDI), together with estimated cost of transition. The paper concludes by warning businesses that inaction increases vulnerability, whilst preparedness maximises potential gains.

Suggested Citation

  • Whyman, Philip, 2002. "Living with the Euro: the consequences for world business," Journal of World Business, Elsevier, vol. 37(3), pages 208-215, October.
    • Handle: RePEc:eee:worbus:v:37:y:2002:i:3:p:208-215
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1090951602000792
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780199279173.
    2. Michael J. Artis & Marco Buti, 2000. "‘Close‐to‐Balance or in Surplus’: A Policy‐Maker's Guide to the Implementation of the Stability and Growth Pact," Journal of Common Market Studies, Wiley Blackwell, vol. 38(4), pages 563-591, November.
    3. repec:sae:niesru:v:136:y::i:1:p:93-118 is not listed on IDEAS
    4. David Simon, 2000. "EMU and the Opportunities for British Business," Palgrave Macmillan Books, in: Mark Baimbridge & Brian Burkitt & Philip Whyman (ed.), The Impact of the Euro, chapter 11, pages 169-176, Palgrave Macmillan.
    5. Giles Radice, 2000. "The Case for the European Single Currency and for the UK Joining It," Palgrave Macmillan Books, in: Mark Baimbridge & Brian Burkitt & Philip Whyman (ed.), The Impact of the Euro, chapter 17, pages 221-225, Palgrave Macmillan.
    6. Hughes Hallett, A J & Vines, D, 1993. "On the Possible Costs of European Monetary Union," The Manchester School of Economic & Social Studies, University of Manchester, vol. 61(1), pages 35-64, March.
    7. Christoph F. Büchtemann & Jürgen Schupp, 1992. "Repercussions of Reunification: Patterns and Trends in the Socio-Economic Transformation of East Germany," Discussion Papers of DIW Berlin 44, DIW Berlin, German Institute for Economic Research.
    8. Martin Rhodes, 1992. "The Future of the ‘Social Dimension’: Labour Market Regulation in Post 4992 Europe," Journal of Common Market Studies, Wiley Blackwell, vol. 30(1), pages 23-52, March.
    9. repec:bla:kyklos:v:51:y:1998:i:4:p:509-36 is not listed on IDEAS
    10. Sapir, André & Sekkat, Khalid & Weber, Axel A, 1994. "The Impact of Exchange Rate Fluctuations on European Union Trade," CEPR Discussion Papers 1041, C.E.P.R. Discussion Papers.
    11. Barry Eichengreen, 1992. "Is Europe an Optimum Currency Area?," Palgrave Macmillan Books, in: Silvio Borner & Herbert Grubel (ed.), The European Community after 1992, chapter 8, pages 138-161, Palgrave Macmillan.
    12. Philip Arestis & Malcolm Sawyer, 2000. "The Deflationary Consequences of the Single Currency," Palgrave Macmillan Books, in: Mark Baimbridge & Brian Burkitt & Philip Whyman (ed.), The Impact of the Euro, chapter 7, pages 100-112, Palgrave Macmillan.
    13. David Marsden, 1992. "Incomes Policy for Europe? or Will Pay Bargaining Destroy the Single European Market?," British Journal of Industrial Relations, London School of Economics, vol. 30(4), pages 587-604, December.
    14. John Edmonds, 2000. "The Single Currency and the European Social Model," Palgrave Macmillan Books, in: Mark Baimbridge & Brian Burkitt & Philip Whyman (ed.), The Impact of the Euro, chapter 14, pages 191-199, Palgrave Macmillan.
    15. Michael Bruno & Jeffrey D. Sachs, 1985. "Economics of Worldwide Stagflation," NBER Books, National Bureau of Economic Research, Inc, number brun85-1, January.
    16. C. A. E. Goodhart, 1995. "The Political Economy of Monetary Union (1995)," Palgrave Macmillan Books, in: The Central Bank and the Financial System, chapter 8, pages 156-202, Palgrave Macmillan.
    17. Ermisch, John, 1991. "European Integration and External Constraints On Social Policy: Is a Social Charter Necessary?," National Institute Economic Review, National Institute of Economic and Social Research, vol. 136, pages 93-118, May.
    18. Matthew Canzoneri & Behzad Diba, 1999. "The Stability and Growth Pact: A Delicate Balance or an Albatross?," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 26(3), pages 241-258, September.
    Full references (including those not matched with items on IDEAS)

    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. Thomas Plümper and Eric Neumayer, 2008. "Exchange Rate Regime Choice with Multiple Key Currencies," The Institute for International Integration Studies Discussion Paper Series iiisdp264, IIIS.
    2. Christopher A. Pissarides, 2003. "Unemployment in Britain: A European Success Story," CESifo Working Paper Series 981, CESifo.
    3. Anne Brunila & Marco Buti & Jan In 'T Veld, 2003. "Fiscal Policy in Europe: How Effective Are Automatic Stabilisers?," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 30(1), pages 1-24, March.
    4. Andrew Hughes Hallett & Laura Piscitelli, 1999. "EMU in Reality: The Effect of a Common Monetary Policy on Economies with Different Transmission Mechanisms," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 26(4), pages 337-358, December.
    5. Lindbeck, A & Snower, D-J, 1996. "Centralized Bargaining, Multi-Tasking, and Work Incentives," Papers 620, Stockholm - International Economic Studies.
    6. Milas, Costas & Otero, Jesus G., "undated". "Identification And Estimation Of A Labour Market Model For The Tradeables Sector: The Greek Case," Economic Research Papers 269250, University of Warwick - Department of Economics.
    7. Adam S. Posen & Daniel Popov Gould, 2007. "Has EMU Had Any Impact on the Degree of Wage Restraint?," Palgrave Macmillan Books, in: David Cobham (ed.), The Travails of the Eurozone, chapter 7, pages 146-178, Palgrave Macmillan.
    8. Ron Smith & Gylfi Zoega, 2004. "Global Shocks and Unemployment Adjustment," Economics wp24_smith, Department of Economics, Central bank of Iceland.
    9. Petrakis, Emmanuel & Vlassis, Minas, 2005. "The endogenous national minimum wage institution," Journal of Macroeconomics, Elsevier, vol. 27(4), pages 747-762, December.
    10. Stefano Scarpetta, 1998. "Labor Market Reforms and Unemployment: Lessons from the Experience of the OECD Countries," Research Department Publications 4136, Inter-American Development Bank, Research Department.
    11. Odile Chagny & Frédéric Reynès & Henri Sterdyniak, 2002. "Le taux de chômage d'équilibre. Discussion théorique et évaluation empirique," Revue de l'OFCE, Presses de Sciences-Po, vol. 81(2), pages 205-244.
    12. Fehn, Rainer, 2002. "Arbeitsmarktflexibilisierung und Arbeitslosigkeit," Discussion Paper Series 54, Julius Maximilian University of Würzburg, Chair of Economic Order and Social Policy.
    13. repec:spo:wpecon:info:hdl:2441/1905 is not listed on IDEAS
    14. Pehkonen, Jaakko, 1995. "Wages and productivity growth in the Nordic countries," European Economic Review, Elsevier, vol. 39(6), pages 1181-1196, June.
    15. Ronald Bachmann & Michael C. Burda, 2010. "Sectoral Transformation, Turbulence and Labor Market Dynamics in Germany," German Economic Review, Verein für Socialpolitik, vol. 11(1), pages 37-59, February.
    16. Dominique Hachette & Fernando Ossa & Francisco Rosende, 1996. "Aspectos Monetarios y Macroeconómicos de la Integración," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 33(98), pages 153-183.
    17. Jakob Madsen, 1998. "Errors-in-variables, supply side effects, and price elasticities in foreign trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 134(4), pages 612-637, December.
    18. Karl Ove Moene & Michael Wallerstein, 1993. "The Economic Performance of Different Bargaining Institutions," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 19(4), pages 423-450.
    19. Böckerman, Petri & Laaksonen, Seppo & Vainiomäki, Jari, 2006. "Micro-level evidence on wage rigidities in Finland," MPRA Paper 1811, University Library of Munich, Germany.
    20. Junankar, Pramod N. (Raja) & Madsen, Jakob B., 2004. "Unemployment in the OECD: Models and Mysteries," IZA Discussion Papers 1168, Institute of Labor Economics (IZA).
    21. Mohd Hussain Kunroo, 2015. "Theory of Optimum Currency Areas," Review of Market Integration, India Development Foundation, vol. 7(2), pages 87-116, August.

    More about this item

    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:eee:worbus:v:37:y:2002:i:3:p:208-215. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/620401/description#description .

    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.