Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/32515
Authors: 
Berthold, Norbert
Year of Publication: 
1998
Series/Report no.: 
Wirtschaftswissenschaftliche Beiträge des Lehrstuhls für Volkswirtschaftslehre, Wirtschaftsordnung und Sozialpolitik, Universität Würzburg 22
Abstract: 
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.
Subjects: 
European Monetary Union
real wage rigidity
fiscal policy
unemployment
labor market reforms
monetary policy
asymmetric shocks.
JEL: 
E24
E63
H30
J30
Document Type: 
Working Paper

Files in This Item:
File
Size
159.35 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.