Do Labour Market Reforms Achieve a Double Dividend under EMU?

• 영문명: Do Labour Market Reforms Achieve a Double Dividend under EMU? Discretionary versus Rule-based Monetary Policy Revisited
• 발행기관: 세종대학교 경제통합연구소
• 저자명: Ansgar Belke Martina Kamp
• 간행물 정보: 『Journal of Economic Integration』제14권 제4호, 572~605쪽, 전체 34쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 1999.12.31

영문 초록

High equilibrium unemployment and the inflation bias in some EU countries require fundamental reforms of labour-market institutions. Impacts of different monetary regimes inside and outside EMU on the incentives for labour- market reforms are examined in a Barro- Gordon framework from the perspective of a single country. Monetary policy (discretionary versus rule-based) and the degree of labour-market reforms are determined simultaneously. It can be shown that discretionary policy outside EMU leads to a higher degree of reforms than rulebased policy since in the former case reforms reduce both unemployment and the inflation bias. However, rule-based monetary policy inside EMU limits the benefits of reforms to a positive impact on employment. Nevertheless, total economy welfare under EMU is superior to the one under discretionary policy. Insofar as a superior instrument is available for the parallel reduction of the equilibrium inflation rate, namely a strict monetary policy rule, the higher degree of labourmarket reforms under discretionary monetary policy outside EMU only signals a kind of an overshooting. (JEL Classifications: E52, E61, J38)

목차

Ⅰ. Introduction

Ⅱ. The Model

Ⅲ. Results

Ⅳ. Welfare Comparisons of Different Monetary Policy Regimes

Ⅴ. Model Extensions

Ⅵ. Conclusion