Why EMU is Irrelevant for the German Economy
نویسندگان
چکیده
منابع مشابه
Why is too much leverage bad for the economy ?
In this paper we show that competitive equilibrium prices and margin requirements naturally lead to too much leverage relative to the constrained optimum. We describe two mechanisms through which equilibrium forces lead agents to borrow too much and to hold too little collateral. To illustrate the first mechanism we present a very simple example without collateral and default where restricting ...
متن کاملSome Political Economy Aspects of EMU
European Monetary Union (EMU) is here at last, but according to economists’ traditional perspective on economic policy making, it should not be. Given the nontrivial nature of this occurrence, it offers an important warning signal that policy economists need to reexamine our assumptions about the forces generating economic policy decisions. Economists, of course, have strong preferences for ana...
متن کاملGlobalization and the German Economy
Liberalization of markets is the most important prerequisite for the process of Globalisation. In fact, liberalization has the capacity to increase countries wealth more than development aid. Once developing countries like SouthKorea, Taiwan, Singapore and Hong Kong for example became the so-called economically successful Asian “Tiger states” of the 1980s. In Europe, Ireland is a similar exampl...
متن کاملThe Political Economy of Fiscal Policy in EMU
This paper treats low inflation in EMU as a collective action problem for Ecofin. The SGP and more broadly the BEPG, operating against a background of the ECB and wage-setting, are the instruments for this. The ECB delegates sanctioning to the member-states while preserving the authority to set interest rates. Labour relations systems in different countries pursue disinflationary wage settlemen...
متن کاملEast German Unemployment: The Myth of the Irrelevant Labor Market
This paper indicates that East Germany’s unemployment originates primarily in the labor market, caused by the fast wage adjustment after German reunification. We model the resulting labor market traps in a search and matching framework, show that they are difficult to overcome, and provide empirical evidence. We argue that under these circumstances, demand-side policies are effective mainly whe...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 1999
ISSN: 1556-5068
DOI: 10.2139/ssrn.174308