Northern and Eastern enlargement of EMU: do structural reforms matter?

Hughes Hallett, Andrew, Hougaard Jensen, Svend E. and Richter, Christian (2004) Northern and Eastern enlargement of EMU: do structural reforms matter? (Discussion Paper) Vienna, Austria : Suerf. 52 p. ISBN 390210922X

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Abstract

This paper studies the incentives to join or enlarge a monetary union under alternative assumptions about the extent of market reform within the union and in candidate countries. Lack of labour mobility, wage/price flexibility or fiscal reform brings costs for both new entrants and in the existing union. Countries will only want to join a union where there has been sufficient reform, and where markets are more flexible than their own. But existing members will want the same properties of their new partners as well. Fiscal restrictions, or a lack of fiscal flexibility, will exaggerate this incentive mismatch and may delay the necessary reforms.

Item Type: Monograph (Discussion Paper)
Research Area: Economics and econometrics
Faculty, School or Research Centre: Faculty of Arts and Social Sciences > School of Economics (until November 2012)
Depositing User: Christian Richter
Date Deposited: 23 Feb 2009 15:53
Last Modified: 16 Jul 2012 21:47
URI: http://eprints.kingston.ac.uk/id/eprint/4592

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