The policy mix and policy coordination in EMU - how can it contribute to higher growth and employment?

2003 ◽  
Vol 9 (4) ◽  
pp. 610-632 ◽  
Author(s):  
Andrew Watt ◽  
Volker Hallwirth
Keyword(s):  
Economic Policy ◽  
Trade Unions ◽  
Policy Coordination ◽  
The Other ◽  
Current Policy ◽  
Policy Mix ◽  
Wage Policy ◽  
Political Opposition ◽  
Policy Actors

This article makes a case for improved coordination between the three main areas of economic policy - monetary, fiscal and wage policy - in the context of EMU. Focusing in particular on the monetary-wage policy link, it argues that, in an uncertain world, a coordinated macro policy mix would produce superior results than the current policy assignment, raising the rate at which the European economy can grow without inflationary pressures. However, such a strategy must overcome a number of practical difficulties and political opposition. The Macroeconomic Dialogue could provide a forum for discussions between policy actors on a more cooperative, growth and employment-oriented strategy. Trade unions must play a key role both in coordinating their wage policies and in promoting greater interaction with the other policy-mix actors.

Economic Superpower in an Age of Limits

2014 ◽  
Vol 21 (3) ◽  
pp. 278-298
Author(s):  
Yu Takeda
Keyword(s):  
United States ◽  
International Economic ◽  
Economic Policy ◽  
Large Scale ◽  
Developed Countries ◽  
The United States ◽  
Policy Coordination ◽  
The Other ◽  
Bilateral Cooperation ◽  
Perceptual Changes

This paper examines macroeconomic policy coordination between Japan and the United States under the locomotive strategy from 1977 to 1979. Previous studies have described the strategy as a fiasco because of its negative economic impact. In fact, the Japanese government, after two years of stimulus packages, quit trying to be a locomotive bringing other developed countries out of their economic difficulties and the u.s. government admitted it in 1979. On the other hand, as this article shows, bilateral cooperation with the United States under this strategy expanded the roles and burdens of Japan, an emerging economic superpower, in international economic policy coordination. Japan’s efforts to implement the strategy made the u.s. government believe that Tokyo would continue to respond to its request to bear larger international responsibilities, while it also increased awareness of Japan’s global role in Tokyo. These bilateral perceptual changes paved the way for subsequent policy coordination and Japan’s assumption of greater burdens, notably the adoption of large-scale stimulus packages under belt-tightening budgets.

Asymmetrien in der Wohnungspolitik reduzieren

2014 ◽  
Vol 63 (1) ◽  
Author(s):  
Tobias Just
Keyword(s):  
Federal Government ◽  
Housing Markets ◽  
The Other ◽  
Current Policy ◽  
Policy Mix ◽  
Negative Effects ◽  
Short Term ◽  
Policy Makers ◽  
Energy Emissions ◽  
Outward Migration

AbstractThere are four major challenges for housing policy in the near and midterm future: First, rents in many German conurbations have been rising significantly faster than incomes over the last five years. Though it can rightly be argued, that the suggested policies of the new German federal government are less detrimental than often perceived by real estate professionals, it must be feared that policy makers have underestimated indirect negative effects for both housing and labour markets. Still, what is more important, is that the current discussion on housing policies is focused on the short term putative misallocations, and to a significant lesser extent on the other three structural challenges of the German housing markets, i. e. increasing vacancies in outward-migration areas, severe lack of „low-barrier“- housing for seniors and a need to reduce energy emissions in the property stock. This asymmetry is unintelligible, as markets can comparatively easily deal with the first short-term challenge, provided supply-elasticities are increased. However, the other three challenges are to a large extent due to externalities, and this implies that markets cannot easily correct imbalances. It would therefore be important to rebalance the current policy-mix and debate.

Wage policy under EMU

2003 ◽  
Vol 9 (4) ◽  
pp. 666-687 ◽  
Author(s):  
Ronald Janssen ◽  
Emmanuel Mermet
Keyword(s):  
Trade Unions ◽  
Wage Bargaining ◽  
The Other ◽  
Economic Policies ◽  
Wage Policy ◽  
Wage Formation ◽  
Lower Wage ◽  
The One ◽  
Wage Increases ◽  
The Impact

After reviewing the different theories on the impact of EMU on wage policies and the way in which trade unions have sought to organise international coordination of wage bargaining in Europe, this article investigates whether EMU has had an effect on wage formation. It finds that there is indeed such an effect. EMU has gone hand in hand with relatively lower wage increases than in the pre-EMU period. European coordination of wage bargaining therefore remains necessary and has to be strengthened. This article also describes the interaction that has taken place over the last five years between wage formation on the one hand and macro-economic policies on the other. We find that here there is much scope for an improved and more intense dialogue between trade unions, the ECB and governments.

Economic Policy Coordination: Foundations, Structures, and Objectives

2020 ◽  
Author(s):  
Jean-Paul Keppenne
Keyword(s):  
European Union ◽  
Economic Policy ◽  
Monetary Union ◽  
Policy Coordination ◽  
The Other ◽  
Economic And Monetary Union ◽  
The European Union ◽  
The Core

The Treaty on European Union (TEU) provides, in its Article 3(4), that ‘[t]he Union shall establish an economic and monetary union whose currency is the euro’. This Economic Monetary Union (EMU) finds its origin in the Treaty of Maastricht of 7 February 1992. As part of this EMU, the core provisions framing the economic policy coordination of the Union are included in the Treaty on the Functioning of the European Union (TFEU) amongst the other internal Union policies. Consequently, the so-called ‘Community method’ fully applies in this field.

Psychology of the Market and Economic Power (On Psychological Approach of Alan Greenspan to the Analysis of Economic Problems)

2011 ◽  
pp. 99-118
Author(s):  
Yu. Olsevich
Keyword(s):  
Economic Policy ◽  
Institutional Transformation ◽  
The Other ◽  
Economic Power ◽  
Psychological Approach ◽  
Market System ◽  
Economic Problems ◽  
Systemic Crisis ◽  
Micro Level ◽  
The One

The article analyzes the psychological basis of the theory and economic policy of libertarianism, as contained in the book by A. Greenspan "The Age of Turbulence", clarifies the strengths and weaknesses of this doctrine that led to its discredit in 2008. It presents a new understanding of liberalization in 1980-1990s as a process of institutional transformation at the micro and meso levels, implemented by politicians and entrepreneurs with predatory and opportunistic mentality. That process caused, on the one hand, the acceleration of growth, on the other hand - the erosion of informal foundations of a market system. With psychology and ideology of libertarianism, it is impossible to perceive real macro risks generated at the micro level, which lead to a systemic crisis, and to develop measures to prevent it.

Stability and Governability the Benign Effects of Party Dominance in South Africa

2020 ◽  
Vol 13 (1) ◽  
pp. 56-75
Author(s):  
Ainara Mancebo
Keyword(s):  
South Africa ◽  
South African ◽  
Trade Unions ◽  
African National Congress ◽  
The Other ◽  
Democratic Transitions ◽  
African Countries ◽  
National Congress ◽  
Independence Era ◽  
Party Dominance

A tripartite alliance formed by the African National Congress, the South African Communist Party and the Congress of South African Trade Unions has been ruling the country with wide parliamentarian majorities. The country remains more consensual and politically inclusive than any of the other African countries in the post-independence era. This article examines three performance’s aspects of the party dominance systems: legitimacy, stability and violence. As we are living in a period in which an unprecedented number of countries have completed democratic transitions, it is politically and conceptually important that we understand the specific tasks of crafting democratic consolidation.

40 Jahre Stabilitäts- und Wachstumsgesetz. Theoretische Analyse und statistische Evaluation einer verfassungsökonomischen Innovation

2008 ◽  
Vol 49 (1) ◽  
Author(s):  
Heinz Grossekettler
Keyword(s):  
Economic Growth ◽  
Trade Unions ◽  
Full Employment ◽  
Working Hours ◽  
Control Group ◽  
Wage Policy ◽  
Inappropriate Use ◽  
Success Stories ◽  
The Law ◽  
The Impact

AbstractThis paper considers the impact over time of the German “Economic Growth and Stability Law”, which had its 40th anniversary on the 6th June, 2007. After looking at the history and development of the law and the associated expectations, the intended functions are analysed critically. Inappropriate use of the law is analysed from the perspective of public choice, as well as the insufficient consideration of reaction delays and, above all, the underestimation of the role of expectations. Furthermore, attention is paid to the fact that planning and coordination problems have not been satisfactorily resolved. A comparison with a control group from major European countries is then used to determine whether one can talk meaningfully in the German context of particular success stories in countering fluctuations in business cycles, the development of governmental debt and of legal objectives with respect to “price level stability”, “high levels of employment”, “current account equilibrium” and “satisfactory economic growth”. It becomes evident that government debt and unemployment have risen more in Germany and that growth rates have declined more sharply than in the countries on which the comparison is based. After discussing the hypotheses for explaining the weak German growth, growth accounting demonstrates that changes in the demographic structure, the substantial shortening of working hours and early retirement, blunders in the reunification process and an aggressive wage policy on the part of trade unions, particularly in the seventies, are the main reasons for low growth. This wage policy was triggered by the expectation of the trade unions that, with the aid of the Stability and Growth Law, the state would ensure full employment. In reality, however, the wage policy led to a reduced rate of investment and growth. This process could only be terminated by the restrained wage policy of the past few years.

scholarly journals Macroeconomic policies and economic democracy in neoliberal Brazil

2015 ◽  
Vol 24 (3) ◽  
pp. 513-539 ◽  
Author(s):  
Daniel Bin
Keyword(s):  
Economic Policy ◽  
Political Influence ◽  
Well Being ◽  
Brazilian Population ◽  
The Other ◽  
Economic Democracy ◽  
Macroeconomic Policies ◽  
Monetary Policies ◽  
Popular Participation ◽  
Political Inequality

Abstract The objective of this paper is to investigate some of the forms of conduct of macroeconomic policies related to a substantive concept of democracy, characterized by popular participation - direct or through representatives - in decisions that unevenly affect the material well-being of the entire Brazilian population. Special attention is given to decisions about the country's public indebtedness in the years following the launching of the RealPlan. Empirical evidences show a limited democracy, revealed by the material inequality, which in turn reproduces political inequality and restricts real freedom. This is combined with the selective bureaucratic insulation of economic policy decisions, and the parliament's failure to deal with the macroeconomic agenda. The latter is thus left to the control of the executive branch's economic apparatus, which on one hand submits itself to substantial political influence from finance and, on the other hand, restricts popular participation in decisions on both fiscal and monetary policies.

scholarly journals Macroeconomic policy regime in Poland

Equilibrium ◽  
2016 ◽  
Vol 11 (3) ◽  
pp. 411
Author(s):  
Milka Kazandziska Kazandziska
Keyword(s):  
Monetary Policy ◽  
Economic Policy ◽  
Industrial Policy ◽  
Open Economy ◽  
Aggregate Demand ◽  
Financial System ◽  
Value Added ◽  
Macroeconomic Policy ◽  
Wage Policy ◽  
Foreign Economic Policy

The goal of this paper is to analyse the economic development of Poland using the concept of macroeconomic policy regimes (MPRs). Six elements of a MPR will be identified: foreign economic policy, industrial policy, the financial system, wage policy, monetary policy and fiscal policy. Examining the functionality of the development of these elements applied to Poland is a further aim of this paper. The functionality of the development of the MPR elements will be analysed on the basis of the fulfilment of the objectives, as well as the use of the proposed instruments and strategy assigned to every element of MPR. Due to space limits, we are going to focus on the former in this paper. Taking into consideration that Poland is an emerging and a relatively open economy, foreign economic policy and industrial policy play very significant roles in restructuring of the economy towards production and exports of high value-added products, which would enable the country to follow a growth path consistent with an external balance. The financial needs of the manufacturing sector and particularly of the producers and/or exporters of high-end products need to be satisfied by the financial system, whose stability needs to be secured with the help of monetary policy. The latter is, moreover, in charge of providing low-cost finance and maintaining the stability of the exchange rate. Stabilising the inflation rate would be given to wage policy. Fiscal policy’s main tasks would be to correct aggregate demand shocks and reduce income inequality.

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