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Structural Reforms in the Euro Area : Economic Impact and Role of Synchronization Across Markets and Countries / Luc Everaert, Werner Schule.

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Format:
Book
Government document
Author/Creator:
Everaert, Luc.
Contributor:
Schule, Werner.
International Monetary Fund. European Department.
Series:
IMF Working Papers; Working Paper ; No. 2006/137
IMF Working Papers
Language:
English
Subjects (All):
Econometric models--European Economic Community countries.
Econometric models.
Fiscal policy--European Economic Community countries.
Fiscal policy.
Physical Description:
1 online resource (32 p.)
Edition:
1st ed.
Place of Publication:
Washington, D.C. : International Monetary Fund, 2006.
Language Note:
English
Summary:
Using the IMF's Global Economic Model, calibrated to the European Union, the effects of reform in product and labor markets are quantified for both a large and a small euro area economy. When markups in these markets are reduced, there are sizable long-term gains in output and employment. Most of these gains accrue to the reforming country regardless of whether reform takes place elsewhere; conversely, spillovers of reform elsewhere are limited. Labor and services market reforms have transitional costs as they induce a temporary decline in consumption, but raising competition in goods markets can mitigate some of these costs. Thus, coordinating the timing of reforms across markets is beneficial, and the more so the more open the reforming economy. In addition, synchronizing structural reforms across large countries of the euro area could eliminate transition costs. Increased supply would allow monetary policy to ease without jeopardizing price stability objectives, though in practice uncertainty may prevent full accommodation.
Contents:
""Contents""; ""I. INTRODUCTION""; ""II. GLOBAL ECONOMIC MODEL""; ""III. SIMULATION RESULTS""; ""IV. CONCLUSIONS""; ""REFERENCES""
Notes:
"June 2006".
Description based on print version record.
ISBN:
9786613828316
9781462351824
1462351824
9781452749136
1452749132
9781283515863
1283515865
9781451909166
1451909160
OCLC:
694141189

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