Peripheral Europe’s Debt and German Wages. The Role of Wage Policy in the Euro Area
The paper argues that the Greek debt crisis, as well as those of other Southern European countries and Ireland, has to be seen in macroeconomic context. The sum of the public sector balance, the (domestic) private sector balance and the current account deficit (or equivalently: the capital inflows) has to add up to zero. By implication in a country that has a current account deficit either the private sector or the public sector has to run a deficit. Therefore the peripheral countries can only solve their public debt problems if there is a change in German current account surpluses. The paper explores the implications of this for wage policy in the euro zone.
Other versions of this item:
- Engelbert Stockhammer, 2011. "Peripheral Europe's debt and German wages: the role of wage policy in the Euro area," International Journal of Public Policy, Inderscience Enterprises Ltd, vol. 7(1/2/3), pages 83-96.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Ingemar Lindberg: â€Sjunkande lÃ¶neandel har bidragit till krisenâ€
by Debatt in Dagens Arena on 2012-03-14 00:30:53
- Jorge Uxó & Jesús Paúl & Eladio Febrero, 2012. "European economic policy and the problem of current account imbalances: the case of Germany and Spain," Chapters,in: Keynes’s General Theory for Today, chapter 12, pages 207-225 Edward Elgar Publishing.
- Mavroudeas, Stavros D., 2015. "The Greek saga: competing explanations of the Greek crisis," Economics Discussion Papers 2015-1, School of Economics, Kingston University London.
- Hubert Gabrisch, 2015. "Net Capital Flows To And The Real Exchange Rate Of Western Balkan Countries," Economic Annals, Faculty of Economics, University of Belgrade, vol. 60(205), pages 31-52, April – J.
- Alison Johnston & Bob Hancké & Suman Pant, 2013. "Comparative Institutional Advantage in the European Sovereign Debt Crisis," Europe in Question Discussion Paper Series of the London School of Economics (LEQs) 6, London School of Economics / European Institute.
- Hein, Eckhard, 2012.
"Finance-dominated capitalism, re-distribution and the financial and economic crises: A European perspective,"
IPE Working Papers
14/2012, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
- Hein, Eckhard, 2012. "Finance-dominated capitalism, re-distribution and the financial and economic crises - a European perspective," MPRA Paper 35903, University Library of Munich, Germany.
- Hubert Gabrisch & Karsten Staehr, 2015. "The Euro Plus Pact: Competitiveness and External Capital Flows in the EU Countries," Journal of Common Market Studies, Wiley Blackwell, vol. 53(3), pages 558-576, 05.
- Hubert Gabrisch & Karsten Staehr, 2014. "The Euro Plus Pact. Competitiveness and external capital flows in the EU countries," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(1), pages 287-325.
- Hubert Gabrisch & Karsten Staehr, 2012. "The Euro Plus Pact: Competitiveness and External Capital Flows in the EU Countries," Working Papers 324, Institut für Ost- und Südosteuropaforschung (Institute for East and South-East European Studies).
- Hubert Gabrisch & Karsten Staehr, 2012. "The Euro Plus Pact: Competitiveness and external capital flows in the EU countries," Bank of Estonia Working Papers wp2012-5, Bank of Estonia, revised 10 Dec 2012.
- Servaas Storm & C.W.M. Naastepad, 2015. "NAIRU economics and the Eurozone crisis," International Review of Applied Economics, Taylor & Francis Journals, vol. 29(6), pages 843-877, November.
- Thomas Goda & Özlem Onaran & Engelbert Stockhammer, 2014. "A case for redistribution? Income inequality and wealth concentration in the recent crisis," DOCUMENTOS DE TRABAJO CIEF 012186, UNIVERSIDAD EAFIT.
- Goda, Thomas & Onaran, Özlem & Stockhammer, Engelbert, 2014. "A case for redistribution? income inequality and wealth concentration in the recent crisis," Greenwich Papers in Political Economy 14056, University of Greenwich, Greenwich Political Economy Research Centre.
- Alison Johnston & Bob Hancké & Suman Pant, 2013. "Comparative Institutional Advantage in the European Sovereign Debt Crisis," LEQS – LSE 'Europe in Question' Discussion Paper Series 66, European Institute, LSE.
- Enno Schröder, 2015. "Eurozone Imbalances: Measuring the Contribution of Expenditure Switching and Expenditure Volumes 1990-2013," Working Papers 1508, New School for Social Research, Department of Economics, revised Sep 2015.
- Enno Schröder, 2016. "Euro Area Imbalances: Measuring the Contribution of Expenditure Growth and Expenditure Switching," Working Papers 1604, New School for Social Research, Department of Economics.
- Jesper Jespersen & Mogens Ove Madsen (ed.), 2012. "Keynes’s General Theory for Today," Books, Edward Elgar Publishing, number 15049, July.
- Gabrisch, Hubert, 2015. "Cross-border finance, trade imbalances and competitiveness in the euro area," MPRA Paper 68518, University Library of Munich, Germany.
- Alison Johnston & Bob Hancké & Suman Pant, 2013. "Comparative institutional advantage in the European sovereign debt crisis," LSE Research Online Documents on Economics 53177, London School of Economics and Political Science, LSE Library.
- Hermann, Christoph, 2013. "Crisis, structural reform and the dismantling of the European Social Model(s)," IPE Working Papers 26/2013, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
- Scharpf, Fritz W., 2016. "Forced structural convergence in the eurozone: Or a differentiated European monetary community," MPIfG Discussion Paper 16/15, Max Planck Institute for the Study of Societies.
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