Wages and the Euro

Economic Policy in Wake of Monetary Union.- An Economic Policy Framework for European Monetary Union: Some Preliminary Theoretical Considerations; The Function of Exchange Rates; Monetary Policy in a Single Currency Area; Monetary Convergence; Monetary Strategies after the Introduction of Monetary Union; Fiscal Policy after the Beginning of Monetary Union.- The Role of Wage Policy after the Introduction of Monetary Union: Wage Development and Convergence in the Run-Up to Monetary Union; Wage Negotiation Systems in Europe; Labour Market Flexibility in a Common Currency Area; Some Theoretical Considerations; Empirical Analysis; Institutional Conditions for an European Wage Policy; Degree of Centralisation, Growth, Structural Change and Employment; Degree of Centralisation and Labour Market Flexibility; Non-Wage-Related Competitive Elements; Wage Policy in a Common Currency Area.- Simulations on the Future Development for the European Labour Market: The Model and its Modifications; The Structure of the Simulation; The Effects of Monetary Union; Nominal Wage Decreases; Real Wage Decreases; Transforming the Social Security Systems; Productivity-Oriented Wage Formation; Reacting to Shocks.- Conclusions and Economic Policy Recommendations.