How Will EMU Affect Inflation and Unemployment in Europe?

Hans Peter Grüner and Carsten Hefeker

Scandinavian Journal of Economics, 1999, vol. 101, issue 1, 33-47

Abstract: This paper explores how European Monetary Union will change the wage setting behavior of national labor unions. We derive the impact of national inflation aversion and labor militancy on the performance of national labor markets under different monetary arrangements. A common central bank raises inflation and unemployment if it acts as conservatively as national central banks. However, unemployment falls in countries that previously tied their monetary policy to the Bundesbank. We also examine the composition of EMU and the influence of national labor market legislation. JEL Classification: E24; F02; F33

Date: 1999
References: Add references at CitEc
Citations: View citations in EconPapers (71)

Downloads: (external link)
https://doi.org/10.1111/1467-9442.00139

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:scandj:v:101:y:1999:i:1:p:33-47

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0347-0520

Access Statistics for this article

Scandinavian Journal of Economics is currently edited by Richard Friberg, Matti Liski and Kjetil Storesletten

More articles in Scandinavian Journal of Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().