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Articles 1 - 6 of 6
Full-Text Articles in International Economics
Belgium’S 2008 Recentralization Of Wage-Setting Mechanisms And The Decentralization-Unit Labor Costs-Net Exports Link: Chronicle Of A Death Foretold?, Ines Pedro Fernandes
Belgium’S 2008 Recentralization Of Wage-Setting Mechanisms And The Decentralization-Unit Labor Costs-Net Exports Link: Chronicle Of A Death Foretold?, Ines Pedro Fernandes
Undergraduate Economic Review
Anchored on scholarly literature on international competitiveness and the classical definition of competitiveness as net exports, policy making institutions support decentralized wage-setting mechanisms. The rationale is that decentralized wage-setting systems lower wages and unit labor costs (ULC) and, therefore, increase net exports. This paper contains a literature review on the wage-setting–ULC–net exports link and challenges conventional rationales by examining the co-evolution of Belgium’s real wages and net exports across wage percentiles and sectors. Belgium is a case in point, since the country experienced both increasing real wages and increasing net exports after recentralizing wage-setting mechanisms in 2008.
Current Account “Core-Periphery Dualism” In The Emu, Tatiana Cesaroni, Roberta De Santis
Current Account “Core-Periphery Dualism” In The Emu, Tatiana Cesaroni, Roberta De Santis
Roberta De Santis
Current account (CA) dispersion within European Union (EU) member states has been increasing progressively since the 1990s. Interestingly, the persistent deficits in many peripheral countries have not been accompanied by a significant growth process able to stimulate a log run rebalancing as neoclassical theory predicts. To shed light on the issue this paper investigates the determinants of Eurozone CA imbalances, focusing on the role played by financial integration. The analysis considers two samples of 22 OECD and 15 EU countries, three time horizons corresponding to various steps in European integration, different control variables and several panel econometric methods. The results …
When Eastern Labour Markets Enter Western Europe - Ceecs Labour Market Institutions Upon Euro Zone Accession, Joanna Tyrowicz
When Eastern Labour Markets Enter Western Europe - Ceecs Labour Market Institutions Upon Euro Zone Accession, Joanna Tyrowicz
Joanna Tyrowicz
This paper reviews the literature on the labour market institutions in European Union Member States in the context of monetary integration. Traditionally, labour markets are a key concept in the optimal currency area theory, playing the role of the only accommodation mechanism of asymmetric shocks after the monetary unification. There are several theoretical frameworks linking the institutional design of the labour market to the potential effectiveness of monetary policy in the context of currency areas. Many empirical studies addressed these issues too, yielding important policy implications for labour market reforms in the process of monetary unification. However, there seem to …
Optimality And Synchronicity - Where Do We Stand? Oca Theory And Its Empirical Application For Emu, Joanna Tyrowicz
Optimality And Synchronicity - Where Do We Stand? Oca Theory And Its Empirical Application For Emu, Joanna Tyrowicz
Joanna Tyrowicz
Should Poland join EMU? The answer to this question has already been determined by both economists and politicians - by joining EU Poland has agreed to eventually join EMU, which barely any serious economists find to be harmful to our economy. However, the moment of joining the currency union has not been determined and its choice is largely left to the decision of Polish policy makers. Obviously, there are some costs to entering the currency union, as well as some benefits. However, since both the process of accessing and the very participation in the EMU are dynamic in nature, the …
Bond Yield Compression In The Countries Converging To The Euro, Lucjan T. Orlowski, Kirsten Lommatzsch
Bond Yield Compression In The Countries Converging To The Euro, Lucjan T. Orlowski, Kirsten Lommatzsch
WCBT Faculty Publications
We demonstrate that bond yield compression is under way in the countries converging to the euro and that German yields are significant drivers of local currency yields. Based on the evidence from Poland, Hungary and the Czech Republic, we conclude that these new ...Member States of the European Union are ready to adopt the euro without risking a disruptive shock to their financial stability. This message transpires from investigating the daily volatility dynamics of local bond yields as a function of German yields, conditional on changes in local term spreads, exchange rates and adjustments to central bank reference rates. Similar …
The Euro: Ready Or Not? A Retrospective On European Unification: Some Lessons For 1999, Joseph Santos
The Euro: Ready Or Not? A Retrospective On European Unification: Some Lessons For 1999, Joseph Santos
Economics Pamphlet Series
On January 1, 1999, fifteen independent nation-states of Europe are set to relinquish their national currencies in favor of a single European monetary unit, called the euro. While the origins of the European Union (EU) (formerly referred to as the European Community) date back to the Marshall Plan, the inception of the euro occurred in February of 1992 with the passage of the Treaty on European Union, or Maastricht Treaty. Though the prospect of a European Monetary Union (EMU) has attracted many observers from the economics, finance, and business communities, the history of the EU, and its current plan to …