European Parliament Library

Real Wage Rigidities, Fiscal Policy, and the Stability of EMU in the Transition Phase, Eric Thode, Norbert Berthold, Rainer Fehn

Creator
1
Content
1
Other version
1
Label
Real Wage Rigidities, Fiscal Policy, and the Stability of EMU in the Transition Phase, Eric Thode, Norbert Berthold, Rainer Fehn
Language
eng
Abstract
EMU started with eleven member countries as scheduled on January 1, 1999. The paper shows that the primacy of politics over economics in this decision could have serious consequences concerning the stability of EMU in the transition phase. Speculative attacks against currencies which are in economic distress due to asymmetric shocks can still happen. A speculative attack as such cannot force a country out of EMU. However, the country concerned might voluntarily decide to leave the system as the costs of staying inside EMU, e.g., due to further rising unemployment, become too large to bear
resource.governmentPublication
international or intergovernmental publication
Literary form
non fiction
Main title
Real Wage Rigidities, Fiscal Policy, and the Stability of EMU in the Transition Phase
Nature of contents
dictionaries
Responsibility statement
Eric Thode, Norbert Berthold, Rainer Fehn
Series statement
IMF Working Papers