France and the Maastricht Criteria: Fiscal Retrenchment and Labour Market Adjustment
Stephen Bazen and
Eric Girardin ()
Chapter 5 in From EMS to EMU: 1979 to 1999 and Beyond, 1999, pp 95-128 from Palgrave Macmillan
Abstract:
Abstract A widely held view in France is that the sacrifices made in order to qualify for entry into EMU have been huge. The process had already started in the 1980s with the U-turn in macroeconomic policy in March 1983. A decisive choice was then made in favour of a restrictive macroeconomic stance on both the fiscal and monetary fronts, in order to maintain the franc within the ERM. According to this view, French monetary policy was entirely geared to the franc-mark parity, in order to import credibility from the Bundesbank. This entailed rising and persistent unemployment, a long period with no increase in real wages, and so on. The Maastricht convergence process was the crowning of this painful process, with a historic slashing of the budget deficit, and a killing of inflation.
Keywords: Fiscal Policy; Real Wage; Real Interest Rate; Public Debt; Budget Deficit (search for similar items in EconPapers)
Date: 1999
References: Add references at CitEc
Citations:
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
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:pal:palchp:978-1-349-27745-2_7
Ordering information: This item can be ordered from
http://www.palgrave.com/9781349277452
DOI: 10.1007/978-1-349-27745-2_7
Access Statistics for this chapter
More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().