Monetary Union and Precautionary Labour-Market Reform
The paper demonstrates that policy makers 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.
|Date of creation:||01 Nov 1998|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.iies.su.se/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:hhs:iiessp:0659. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Hanna Christiansson)
If references are entirely missing, you can add them using this form.