Real wage rigidities, fiscal policy, and the stability of EMU in the transition phase

Arbeitspapier

Real Wage Rigidities, Fiscal Policy, and the Stability of EMU in the Transition Phase. - EMU will start with eleven member countries as scheduled on January 1, 1999. The paper shows that the primacy of politics over economics in this decision could have serious consequences concerning the stability of EMU in the transition phase. Speculative attacks against currencies which are in economic distress due to asymmetric shocks can still happen. A speculative attack as such cannot force a country out of EMU. However, the country concerned might voluntarily decide to leave the system as the costs of staying inside EMU, e.g. due to further rising unemployment, become too large to bear.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Wirtschaftswissenschaftliche Beiträge ; No. 22

Classification and Topics

• Classification: Wirtschaft ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy ; Fiscal Policies and Behavior of Economic Agents: General ; Wages, Compensation, and Labor Costs: General
• Subject: European Monetary Union ; real wage rigidity ; fiscal policy ; unemployment ; labor market reforms ; monetary policy ; asymmetric shocks. ; Europäische Wirtschafts- und Währungsunion ; Wirtschaftliche Anpassung ; Schock ; Lohnrigidität ; Globalsteuerung ; Devisenspekulation ; EU-Staaten

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Berthold, Norbert
• Event: Veröffentlichung
• (who): Bayerische Julius-Maximilians-Universität Würzburg, Lehrstuhl für Volkswirtschaftslehre, Wirtschaftsordnung und Sozialpolitik
• (where): Würzburg
• (when): 1998

Further information

• Handle: http://hdl.handle.net/10419/32515
• Last update: 10.03.2025, 11:43 AM CET