Hancké, Bob ORCID: 0000-0002-3334-231X
(2003)
The political economy of fiscal policy in EMU.
European Political Economy Review, 1 (1).
pp. 5-14.
ISSN 1742-5697
Abstract
This paper treats low inflation in EMU as a collective action problem for Ecofin. The SGP and more broadly the BEPG, operating against a background of the 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 wagesetting systems.
Item Type: | Article |
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Official URL: | http://www.lse.ac.uk/collections/EPER/main.htm |
Additional Information: | © 2003 European Political Economy Infrastructure Consortium |
Divisions: | European Institute |
Subjects: | H Social Sciences > HB Economic Theory |
Date Deposited: | 06 Oct 2008 15:28 |
Last Modified: | 16 May 2024 00:08 |
URI: | http://eprints.lse.ac.uk/id/eprint/18005 |
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