Name: Inflation and Wage Behaviour in Europe
ISBN: 9780198289869

Inflation and Wage Behaviour in Europe

Giuseppe Tullio

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Author Description

The purpose of this collection is to shed light on the processes that lead to convergence or divergence in national inflation rates. It examines inflation and wage behavior in the European Monetary System (EMS), their determinants, and their implications for the credibility and sustainability of the system's exchange rate mechanism (ERM). The contributors examine issues of monetary control, stability of national and ERM-wide money-demand functions, and the influence of the monetary policy of Germany - the pivotal country in the EMS. They identify several causes of inflation and persistent inflation differentials in the EMS. As well as explaining how the EMS worked, the book also offers reasons for its breakdown in 1992-3 under the blow of exogenous shocks and growing policy conflict between member countries.

Menrva's Summary

THE THESIS

This collection investigates the underlying economic mechanisms that drive convergence or divergence in national inflation rates within the European Monetary System. The authors, including noted economists Giuseppe Tullio and Paul De Grauwe, utilize empirical data from the European Monetary System (EMS) to analyze the determinants of wage behavior and inflation. They present a framework that evaluates the sustainability of the exchange rate mechanism (ERM) and the influence of German monetary policy on the broader European economic landscape.

THE SCOPE MAP

What You Will Find

Analysis of national and ERM-wide money-demand functions
Examination of the 1992-1993 EMS breakdown and exogenous shocks
Evaluation of monetary control policies and inflation differentials
Assessment of the role of Germany as the pivotal anchor for European monetary stability

THE AUTHORITY PERSPECTIVE

Experts recognize this work as a significant contribution to the study of European monetary integration and the structural challenges faced by the ERM. Readers frequently note the technical density of the prose, which serves as a specialized resource for students and practitioners of international macroeconomics.

Page Count:
368

Publication Date:
1997-01-30

Publisher:
Oxford University Press

ISBN-10:
0198289863

ISBN-13:
9780198289869

Economics

Macroeconomics

European History

Finance

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