Das Stagflationsproblem und Europa
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.
|Date of creation:||1995|
|Date of revision:|
|Publication status:||Published in Schriften des Info-Teams Landesverteidigung (1995): pp. 77-80|
|Contact details of provider:|| Postal: Ludwigstr. 28, 80539 Munich, Germany|
Web page: http://www.vwl.uni-muenchen.de
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:lmu:muenar:11744. 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: (Tamilla Benkelberg)
If references are entirely missing, you can add them using this form.