Monetary Union and Precautionary Labour-Market Reform

Lars Calmfors

Working Papers from Stockholm - International Economic Studies

Abstract: The paper demonstrates that policy makers may have a precautionary motive to undertake more labour-market reform -and hence attain lower equilibrium unemployment- inside a monetary union than outside. The reason is a desire to reduce utility cost of variations in employment when asymmetric shocks can no longer be stabilised through domestic monetary policy.

Keywords: MONETARY UNION; LABOUR MARKET; LABOUR POLICY (search for similar items in EconPapers)
JEL-codes: E58 E69 F33 J29 J30 (search for similar items in EconPapers)
Pages: 9 pages
Date: 1998
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Citations: View citations in EconPapers (12)

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Working Paper: Monetary Union and Precautionary Labour-Market Reform (1998)
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Persistent link: https://EconPapers.repec.org/RePEc:fth:stocin:659

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