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Unemployment, Labour-Market Reform and Monetary Union

  • Calmfors, L.
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    The paper analyses various mechanism through which monetary union in Euroep may affect unemployment. The focus is on the political incentives for labour-market reform. There will be more reform outside than inside the EMU to the extent that a national inflation bias can be reduced. But if there is a precautionary motive for low average unemployment in order to reduce the utility cost of macroeconomic variability, there could be more reform in a monetary union.

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    Paper provided by Stockholm - International Economic Studies in its series Papers with number 639.

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    Length: 34 pages
    Date of creation: 1998
    Date of revision:
    Handle: RePEc:fth:stocin:639
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