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Das Stagflationsproblem und Europa


  • Schlicht, Ekkehart


This note, published in 1995, assesses the problems that might be entailed by the introduction of the European monetary union. It is argued that wage pressure will not be diminished by forming the union, and the stagflation problem that lies at the root of the rising trend in unemployment will persist. As exchange rates cannot serve to compensate different wage developments in the monetary union, imbalances will result, and subsidization less competitive member states will be necessary. An indexation of wage settlements is proposed that, similar to exchange rates, permits to compensate divergent developments in wage rates across member states while maintaining the monetary union.

Suggested Citation

  • Schlicht, Ekkehart, 1995. "Das Stagflationsproblem und Europa," Munich Reprints in Economics 11744, University of Munich, Department of Economics.
  • Handle: RePEc:lmu:muenar:11744

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    More about this item


    inflation unemployment; stagflation; indexation; wage indexation; European monetary union; efficiency wages;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy


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