Edited by Ramón Gómez-Salvador, Ana Lamo, Barbara Petrongolo, Melanie Ward and Etienne Wasmer
LABOUR SUPPLY IN A NEW EUROPE
LABOUR SUPPLY IN A NEW EUROPE Francesco Paolo Mongelli To open the panel discussion, I have assembled some ‘early’ empirical evidence on labour market dimensions since the start of EMU (that is, Stage Three of EMU and the run up to it). Some views that had been put forward on the possible eﬀects of EMU were also reviewed. First of all we might ask why should EMU have any eﬀects? What forces might monetary integration unleash or catalyse that did not exist before? There are diverse market-based forces. Some costs will disappear or fall. The introduction of the euro will contribute, amongst other eﬀects, to reducing trading costs both directly and indirectly; for example, by removing exchange rate risks and the cost of currency hedging (although we know that there are diﬀerent views on this cost). Some information costs will be reduced. The euro is expected to have a catalysing role for the Single Market Programme by enhancing price transparency and discouraging price discrimination. This should contribute to reducing market segmentation and fostering competition. Such eﬀects are likely to be displayed more fully following the physical introduction of the euro in January 2002. Some sources of cross-country uncertainties/risks will decline or disappear. A common currency among partner countries is seen as ‘a much more serious and durable commitment’ (McCallum, 1995). A new eﬀect is that one single currency is more eﬃcient than multiple currencies in performing the roles of medium of exchange by...
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.