Link to the University of Pittsburgh
Link to the University Library SystemContact us link
AEI Banner

Worlds apart? Labour Unions, Wages and Monetary Integration in Continental Europe. IHS Political Science Series No. 128, February 2012

Hancké, Bob (2012) Worlds apart? Labour Unions, Wages and Monetary Integration in Continental Europe. IHS Political Science Series No. 128, February 2012. [Working Paper]

[img]
Preview
PDF - Published Version
Download (437Kb) | Preview

    Abstract

    This paper examines the problems of the single currency in light of the organization of labour relations in the member-states and their interaction with monetary policies. Continental (western) Europe consists of two very different systems of employment and labour relations, roughly coinciding with 'coordinated market economies‘ (CME) in the north-west of the continent, and 'Mixed Market Economies‘ in the south. These differences in employment relations and wage-setting systems implied that, against the background of a relatively restrictive one-size-fits-all monetary policy in place since 1999, the north-west of the continent systematically improved its competitiveness, while the south lost competitiveness in parallel. Small differences between the two groups of countries at the start of EMU thus were accentuated and, against the background of low growth and an almost closed E(M)U economy, the northern CMEs accumulated current account surpluses while the GIIPS ran into severe balance of payments problems in 2010 and 2011. The sovereign debt crises of 2010-11, which threatened the survival of the Euro-zone itself in November and December 2011, simply reflected these structural imbalances: current account deficits are financed through debt, private and public. The problem with EMU, in other words, is one of current accounts, not fiscal deficits. The paper reconstructs the construction and emergence of this system through an examination of the development of wage-setting systems against the background of monetary integration in Europe since the second oil shock.

    Export/Citation:EndNote | BibTeX | Dublin Core | ASCII (Chicago style) | HTML Citation | OpenURL
    Social Networking:
    Item Type: Working Paper
    Uncontrolled Keywords: Macroeconomics; political economy; EMU; varieties of capitalism; labour relations.
    Subjects for non-EU documents: EU policies and themes > Policies & related activities > economic and financial affairs > EMU/EMS/euro
    EU policies and themes > Policies & related activities > economic and financial affairs > monetary policy
    EU policies and themes > Policies & related activities > employment/labour market > industrial/labour relations
    EU policies and themes > Policies & related activities > employment/labour market > labour/labor
    Subjects for EU documents: UNSPECIFIED
    EU Series and Periodicals: UNSPECIFIED
    EU Annual Reports: UNSPECIFIED
    Series: Series > Institute for Advanced Studies (Vienna), Department of Political Science > IHS Political Science Series
    Depositing User: Phil Wilkin
    Official EU Document: No
    Language: English
    Date Deposited: 23 Feb 2012 07:33
    Number of Pages: 28
    Last Modified: 23 Feb 2012 07:33
    URI: http://aei.pitt.edu/id/eprint/33636

    Actions (login required)

    View Item

    Document Downloads