Author (Person) | Hancké, Bob |
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Series Title | European Political Economy Review |
Series Details | Volume 1, Number 1 |
Publication Date | Spring 2003 |
ISSN | 1742-5697 |
Content Type | Journal Article |
Abstract:This paper treats low inflation in the Economic and Monetary Union (EMU) as a collective action problem for ECOFIN. The Stability and Growth Pact (SGP) and more broadly the Broad Economic Policy Guidelines (BEPG), operating against a background of the European Central Bank (ECB) and wage-setting, are the instruments for this. The ECB delegates sanctioning to the member-states while preserving the authority to set interest rates. Labour relations systems in different countries pursue disinflationary wage settlements. The BEPG (including the SGP) therefore have to be understood as a critical element in a signalling game between the ECB, ECOFIN and the wage-setting systems. |
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Source Link | Link to Main Source http://aei.pitt.edu/id/eprint/607 |
Subject Categories | Economic and Financial Affairs |
Subject Tags | Economic and Monetary Union [EMU], Economic Governance | Situation, Fiscal Policy |
Keywords | Stability and Growth Pact [SGP] |
International Organisations | European Union [EU] |