Wages and the Euro

Gustav A. Horn ist Wissenschaftlicher Direktor des Instituts für Makroökonomie und Konjunkturforschung in der Hans-Böckler-Stiftung. Von 2000 bis 2004 war er Leiter der Abteilung Konjunktur am Deutschen Institut für Wirtschaftsforschung (DIW) in Berlin. Er ist ein gefragter Konjunkturexperte in Funk und Fernsehen.

1 Economic Policy in Wake of Monetary Union.- 2 An Economic Policy Framework for European Monetary Union.- 2.1 Some Preliminary Theoretical Considerations.- 2.2 The Function of Exchange Rates.- 2.3 Monetary Policy in a Single Currency Area.- 2.4 Fiscal Policy after the Beginning of Monetary Union.- 3 The Role of Wage Policy after the Introduction of Monetary Union.- 3.1 Wage Development and Convergence in the Run-Up to Monetary Union.- 3.2 Wage Negotiation Systems in Europe.- 3.3 Labour Market Flexibility in a Common Currency Area.- 3.4 Institutional Conditions for an European Wage Policy.- 3.5 Non-Wage-Related Competitive Elements.- 3.6 Wage Policy in a Common Currency Area.- 4 Simulations on the Future Development for the European Labour Market.- 4.1 The Model and its Modifications.- 4.2 The Structure of the Simulation.- 4.3 The Effects of Monetary Union.- 4.4 Nominal Wage Decreases.- 4.5 Real Wage Decreases.- 4.6 Transforming the Social Security Systems.- 4.7 Productivity-Oriented Wage Formation.- 4.8 Reacting to Shocks.- 5 Conclusions and Economic Policy Recommendations.- References.