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No credit for transition: efficiency wages, the Maastricht Treaty and German unemployment

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Driffill, John and Miller, Marcus (1998) No credit for transition: efficiency wages, the Maastricht Treaty and German unemployment. Working Paper. Coventry: University of Warwick. Centre for the Study of Globalisation and Regionalisation. Working papers (University of Warwick. Centre for the Study of Globalisation and Regionalisation) (No.04/).

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Abstract

Germany is generally regarded as the nominal anchor for Europe. Its participation is the sine qua non of EMU. It has been the largest net contributor to EU finances, the leading proponent of greater economic and political union, and the leading example of the virtues of fiscal and monetary rectitude as enshrined in the Maastricht treaty. However, reunified Germany combines the prosperous western state with the transitional eastern economy, and the burdens of combining the two roles, that of being an example of fiscal and monetary prudence for the EU on the one hand, and that of financing the transition of the former East Germany on the other, are leading to high unemployment, are slowing the transition process, and may become insupportable. We argue here that Germany should be viewed as part of the problem rather than its treatment.

Item Type: Working or Discussion Paper (Working Paper)
Subjects: H Social Sciences > HC Economic History and Conditions
D History General and Old World > DD Germany
Divisions: Faculty of Social Sciences > Economics
Faculty of Social Sciences > Centre for the Study of Globalisation and Regionalisation
Library of Congress Subject Headings (LCSH): Treaty on European Union (1992), Economic and Monetary Union, Economic development -- Germany, Germany -- Economic policy, Germany -- Economic conditions
Series Name: Working papers (University of Warwick. Centre for the Study of Globalisation and Regionalisation)
Publisher: University of Warwick. Centre for the Study of Globalisation and Regionalisation
Place of Publication: Coventry
Official Date: March 1998
Dates:
DateEvent
March 1998Published
Number: No.04/
Number of Pages: 21
Status: Not Peer Reviewed
Access rights to Published version: Open Access
Funder: European Commission (EC)
Grant number: P96-6151-R (PHARE)

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