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Causes of the 1980s Slump in Europe


  • Jean-Paul Fitoussi

    (Observatoire français des conjonctures économiques)

  • Edmund S Phelps

    (Center on Capitalism and Society)


UNEMPLOYMENT in Europe has reached levels in this decade that have not been seen since the Great Depression. The annual unemployment rate in the European Economic Community rose sharply in 1981 and continued rising to its 1984-85 plateau. In contrast, the U.S. unemployment rate, which also rose to a postwar record level, nearly regained its 1980 level by 1985, as shown below.

Suggested Citation

  • Jean-Paul Fitoussi & Edmund S Phelps, 1986. "Causes of the 1980s Slump in Europe," Sciences Po publications info:hdl:2441/6277, Sciences Po.
  • Handle: RePEc:spo:wpmain:info:hdl:2441/6277

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    References listed on IDEAS

    1. Dehez, Pierre & Fitoussi, Jean-Paul, 1996. "On Minimum Income, Qualification Structure and Salary Scale," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 1996009, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    2. Pierre Dehez & Jean-Paul Fitoussi, 1996. "Revenu minimum, allocations-chômage et subventions à l'emploi," Revue Économique, Programme National Persée, vol. 47(1), pages 33-49.
    3. Pissarides, Christopher A., 1998. "The impact of employment tax cuts on unemployment and wages; The role of unemployment benefits and tax structure," European Economic Review, Elsevier, vol. 42(1), pages 155-183, January.
    4. Fleurbaey, M., 1998. "Employment Subsidies, Unemployment and Monopolistic Competition," Papers 9824, Paris X - Nanterre, U.F.R. de Sc. Ec. Gest. Maths Infor..
    5. Steven J. Davis & Magnus Henrekson, 1997. "Industrial Policy, Employer Size, and Economic Performance in Sweden," NBER Chapters,in: The Welfare State in Transition: Reforming the Swedish Model, pages 353-398 National Bureau of Economic Research, Inc.
    6. Phelps, Edmund S, 1994. "Low-Wage Employment Subsidies versus the Welfare State," American Economic Review, American Economic Association, vol. 84(2), pages 54-58, May.
    7. Brigitte Dormont, 1997. "L'influence du coût salarial sur la demande de travail," Économie et Statistique, Programme National Persée, vol. 301(1), pages 95-109.
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    Blog mentions

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    1. Interest rates, inflation & mechanisms
      by chris dillow in Stumbling and Mumbling on 2014-04-28 18:47:19


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    Cited by:

    1. Froot, Kenneth A & Klemperer, Paul D, 1989. "Exchange Rate Pass-Through When Market Share Matters," American Economic Review, American Economic Association, vol. 79(4), pages 637-654, September.
    2. Howard R. Vane & Chris Mulhearn, 2009. "Interview with Edmund S. Phelps," Journal of Economic Perspectives, American Economic Association, vol. 23(3), pages 109-124, Summer.
    3. Bennett T. McCallum, 1987. "The case for rules in the conduct of monetary policy: a concrete example," Economic Review, Federal Reserve Bank of Richmond, issue Sep, pages 10-18.

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