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European Competitiveness: Learning from de Grauwe Policy Cycles

F. Abraham

Review of Business and Economic Literature, 2011, vol. 56, issue 4, 382-394

Abstract: This paper defines the concept of De Grauwe policy cycle where an original idea on international competitiveness is first rejected or ignored, subsequently gradually accepted and finally becomes conventional wisdom. This policy cycle is first applied to De Grauwe’s well-known research on European Monetary Union and the euro. Subsequently, De Grauwe’s views on wage policies as a strategy of strengthening the international competitive position of small open European economies are discussed.

Date: 2011
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Handle: RePEc:sen:rebelj:v:56:i:4:y:2011:p:382-394