EMU and labour Market Reform
We focus on the political economy question of how incentives to reform are likely to be affected under the unique policy regime provided by the EMU. We develop the analysis using an extended ins & outs Barro-Gordon model of inflation and public expenditure within a framework where labour market reform is endogenous and open-economy effects from fiscal policy are accounted for. We show that when the latter are sufficiently strong, traditional literature results that monetary union reduces incentives to reform no longer hold. Conversely, when open-economy effects are negligible, more reforms are delivered outside the monetary union to the extent that the outsiders' fiscal commitment problems are sufficiently severe.
|Date of creation:||Jan 2000|
|Contact details of provider:|| Postal: Guildford, Surrey GU2 5XH|
Phone: (01483) 259380
Fax: (01483) 259548
Web page: http://www.surrey.ac.uk/economics/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:sur:surrec:0001. 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: (Ioannis Lazopoulos)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.