Monetary Union and Precautionary Labour-Market Reform

Lars Calmfors

No 659, Seminar Papers from Stockholm University, Institute for International Economic Studies

Abstract: The paper demonstrates that policy makers 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 the utility cost of variations in employment when asymmetric shocks can no longer be stabilised through domestic monetary policy.

Keywords: Monetary Union; Asymmetric Shocks; Stabilisation policy; Labour-Market Reform; Equilibrium Unemployment (search for similar items in EconPapers)
JEL-codes: E58 E69 F33 J29 J30 (search for similar items in EconPapers)
Pages: 16 pages
Date: 1998-11-01
References: Add references at CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
http://su.diva-portal.org/smash/get/diva2:328238/FULLTEXT01 (application/pdf)

Related works:
Working Paper: Monetary Union and Precautionary Labour-Market Reform (1998)
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:hhs:iiessp:0659

Access Statistics for this paper

More papers in Seminar Papers from Stockholm University, Institute for International Economic Studies Institute for International Economic Studies, Stockholm University, S-106 91 Stockholm, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Hanna Christiansson ().