Macroeconomic Policies of the Economic and Monetary Union: Theorectical Underpinnings and Challenges
Macroeconomic Policies of the Economic and Monetary Union: Theoretical Underpinnings and Challenges Philip Arestis and Malcolm Sawyer, The Levy Economics Institute and Leeds University Abstract This paper presents two issues: first, an effort to decipher the type of economic analysis and macroeconomic policies of the Economic and Monetary Union (EMU) theoretical and policy framework, which we suggest are essentially of the "new consensus" variety; second, an argument that the challenges to the EMU macroeconomic policies lie in their potential to achieve full employment and low inflation in the euro area. We conclude that the institutional and policy arrangements surrounding the EMU and the euro are neither adequate for dealing with today's problems of unemployment and inflation nor promising for the future. We propose alternative policies, and institutional arrangements.
|Date of creation:||28 Aug 2003|
|Date of revision:|
|Note:||Type of Document - acrobat pdf; prepared on IBM PC; to print on HP/PostScript; pages: 40 ; figures: included|
|Contact details of provider:|| Web page: http://econwpa.repec.org|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Nordhaus, William D, 1973.
"The Effects of Inflation on the Distribution of Economic Welfare,"
Journal of Money, Credit and Banking,
Blackwell Publishing, vol. 5(1), pages 465-504, Part II F.
- William D. Nordhaus, 1972. "The Effects of Inflation on the Distribution of Economic Welfare," Cowles Foundation Discussion Papers 329, Cowles Foundation for Research in Economics, Yale University.
- Laurence Ball & Niamh Sheridan, 2004.
"Does inflation targeting matter?,"
DNB Staff Reports (discontinued)
118, Netherlands Central Bank.
- James Forder, 2004. "The theory of credibility: confusions, limitations and dangers," Chapters, in: Neo-Liberal Economic Policy, chapter 2 Edward Elgar Publishing.
- Kenneth N. Kuttner & Patricia C. Mosser, 2002. "The monetary transmission mechanism: some answers and further questions," Economic Policy Review, Federal Reserve Bank of New York, issue May, pages 15-26.
- Dean Baker & Andrew Glyn & David Howell & John Schmitt, 2002.
"Labor Market Institutions and Unemployment: A Critical Assessment of the Cross-Country Evidence,"
SCEPA working paper series. SCEPA's main areas of research are macroeconomic policy, inequality and poverty, and globalization.
2002-17, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
- Andrew Glyn, 2003. "Labor Market Institutions and Unemployment: A Critical Assessment of the Cross-Country Evidence," Economics Series Working Papers 168, University of Oxford, Department of Economics.
- M. Buti & D. Franco & H. Ongena, 1997.
"Budgetary Policies during Recessions - Retrospective Application of the "Stability and Growth Pact" to the Post-War Period,"
European Economy - Economic Papers 2008 - 2015
121, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
- Marco BUTI & Daniele FRANCO & Hedwig ONGENA, 1997. "Budgeetary Policies during Recessions : Retrospective Application of the Stability and Growth Pact” to the Post-War Period," Discussion Papers (REL - Recherches Economiques de Louvain) 1997041, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Buiter, Willem H. & Corsetti, Giancarlo & Roubini, Nouriel, 1992.
"`Excessive Deficits': Sense and Nonsense in the Treaty of Maastricht,"
CEPR Discussion Papers
750, C.E.P.R. Discussion Papers.
- Buiter, W.H. & Corsetti, G. & Roubini, N., 1992. "Excessive Deficits: Sense and Nonsence in the Treaty of Maastricht," Papers 674, Yale - Economic Growth Center.
- Fertig, Michael & Schmidt, Christoph M., 2002.
"Mobility within Europe – What do we (still not) know?,"
IZA Discussion Papers
447, Institute for the Study of Labor (IZA).
- Michael Fertig & Christoph M. Schmidt, 2003. "Mobility within Europe - What Do We (Still Not) Know?," European Economy Group Working Papers 29, European Economy Group.
- Willem F. Duisenberg, 1999. "Economic and monetary union in Europe : the challenges ahead," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 185-194.
- Ellen E. Meade & D. Nathan Sheets, 2002.
"Regional Influences on U.S. Monetary Policy: Some Implications for Europe,"
CEP Discussion Papers
dp0523, Centre for Economic Performance, LSE.
- Ellen E. Meade & Nathan Sheets, 2002. "Regional influences on U.S. monetary policy: some implications for Europe," International Finance Discussion Papers 721, Board of Governors of the Federal Reserve System (U.S.).
- Atish Ghosh & Steven Phillips, 1998. "Warning: Inflation May Be Harmful to Your Growth," IMF Staff Papers, Palgrave Macmillan, vol. 45(4), pages 672-710, December.
- Philip Arestis & Malcolm Sawyer, 2006.
"The nature and role of monetary policy when money is endogenous,"
Cambridge Journal of Economics,
Oxford University Press, vol. 30(6), pages 847-860, November.
- Philip Arestis & Malcolm Sawyer, 2003. "The Nature and Role of Monetary Policy When Money Is Endogenous," Economics Working Paper Archive wp_374, Levy Economics Institute.
- Kenneth Rogoff, 1985. "The Optimal Degree of Commitment to an Intermediate Monetary Target," The Quarterly Journal of Economics, Oxford University Press, vol. 100(4), pages 1169-1189.
- James Forder, 2004. "Central bank independence: economic theory, evidence and political legitimacy," Chapters, in: The Rise of the Market, chapter 6 Edward Elgar Publishing.
- Kydland, Finn E & Prescott, Edward C, 1977. "Rules Rather Than Discretion: The Inconsistency of Optimal Plans," Journal of Political Economy, University of Chicago Press, vol. 85(3), pages 473-91, June.
When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpma:0308008. 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: (EconWPA)
If references are entirely missing, you can add them using this form.