Misalignments of real exchange rates continue to be the most visible and painful symptom of asymmetric shocks within the Eurozone. An important factor behind such misalignment is the difference in national wage formation and bargaining systems, especially between core and periphery members. This column argues that all members need to have institutions that ensure wage developments are in line with productivity developments. This would eliminate an important source of asymmetric behaviour and reduce resistance to EZ-wide fiscal mechanisms capable of absorbing asymmetric shocks.
Related
-
Heleen Mees
Most Read
-
Zilibotti, Müller, Storesletten
-
Keywood, Baten
-
Lindé, Trabandt
-
Edwards
-
Fishback
-
Eichengreen, O'Rourke
-
Eichengreen
-
De Grauwe, Ji
-
Heldring, Robinson
-
Heckman, LaFontaine
Vox eBooks
Don't Miss
Petralia, Philippon, Rice, Véron
Labhard, McAdam, Petroulakis, Vivian
Events
-
12 - 14 December 2019 / National University of Singapore (NUS) / National University of Singapore (NUS)
-
16 - 17 December 2019 / Frankfurt am Main / European Central Bank
-
16 - 17 December 2019 / Brussels / Université Libre de Bruxelles (ULB)
-
8 - 8 January 2020 / Amsterdam / SUERF and DNB
-
18 - 19 January 2020 / University of Warwick, Coventry / University of Warwick
CEPR Policy Research
-
Gobillon, Solignac
-
Giglio, Maggiori, Stroebel, Weber
-
Summers, Fatás
-
Favero, Galasso
-
Butt, Churm, McMahon, Morotz, Schanz
-
Eichengreen, Avgouleas, Poiares Maduro, Panizza, Portes, Weder di Mauro, Wyplosz, Zettelmeyer
-
Baldwin, Beck, Bénassy-Quéré, Blanchard, Corsetti, De Grauwe, den Haan, Giavazzi, Gros, Kalemli-Ozcan, Micossi, Papaioannou, Pesenti, Pissarides , Tabellini, Weder di Mauro
-
Baldwin, Nakatomi
-
Thimann
-
Goodhart, Perotti