Calmfors, Lars () (Institute for International Economic Studies, Stockholm University)
Abstract
The likely impact of the EMU on the variability and level of employment is analysed. The major conclusions are: (1) Although an inflation-target regime will constrain monetary policy of a non-participant in the EMU, it still leaves considerable scope for exchange rate chages in the case of country-specific demand-shocks, provided that there is some nominal price and wage flexibility. (2) Variations in payroll taxes can be used as a substitute for exchange rate changes in the EMU, but it will be an imperfect substitute. (3) Money-wage flexibility is likely to be larger inside than outside the EMU, but probably not by much. (4) There are various mechanisms through which the EMU may affect the incentives for labour-market reform to reduce equilibrium unemployment, but the net impact is highly uncertain.
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Paper provided by Stockholm University, Institute for International Economic Studies in its series Seminar Papers with number
657.
Length: 55 pages Date of creation: 01 Oct 1998 Date of revision: Handle: RePEc:hhs:iiessp:0657
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Find related papers by JEL classification: E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies E69 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Other F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions J29 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Other J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
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Weiss, Yoram, 1976.
"The Wealth Effect in Occupational Choice,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 17(2), pages 292-307, June.
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