Belgium as a small open economy in the core of Europe

Filip Abraham

No 109, Discussion Papers from VATT Institute for Economic Research

Abstract: Small open economies in Europe share many of the same characteristics, policy choices and economic problems. This paper argues that Belgium is profoundly affected by its position as a small open economy in the core of the European Union. Yet, this European dimension does not prevent that even a small open economy as Belgium takes policy decisions with far-reaching consequences. The Belgian experience also provides several interesting insights for other small European countries and for the European integration process as a whole. In this context, particular attention is paid to (1) the consequences of a fixed exchange rate policy, (2) the interdependence between exchange rate stabilization, income policy and international competitiveness, (3) budgetary discipline in the run-up to European Monetary Union, (4) long-run international trade specialization, (5) labor market performance and (6) Belgian federalism.

Keywords: small open economies, European integration, federalism, Economic growth, Taloudellinen kasvu, Macroeconomic policy, Talouspolitiikka, International comparisons, Kansainväliset vertailut, Labour market, Työmarkkinat, Taxation and Social Transfers, Julkisen talouden rahoitus ja tulonsiirrot, E400 - Money and Interest Rates: General (includes measurement and data), F020 - International Economic Order; Noneconomic International Organizations; Economic Integration and Globalization: General, F430 - Economic Growth of Open Economies, H600 - National Budget, Deficit, and Debt: General, J000 - Labor and Demographic Economics: General, (search for similar items in EconPapers)
Date: 1995
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Persistent link: https://EconPapers.repec.org/RePEc:fer:dpaper:109

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