Tuesday, October 25, 2005
[IWS] ETUI-REHS/IMK: new! ECONOMIC TRENDS 2006 Euro Area [25 October 2005]
IWS Documented News Service
_______________________________
Institute for Workplace Studies Professor Samuel B. Bacharach
School of Industrial & Labor Relations Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor Stuart Basefsky
New York, NY 10016 Director, IWS News Bureau
________________________________________________________________________
European Trade Union Institute (ETUI) for Research, Education, Health and Safety (REHS)
and the
Hans Boeckler Stiftung's
The Macroeconomic Policy Institute (IMK)
http://www.boeckler.de/cps/rde/xchg/SID-3D0AB75D-972DD24B/hbs/hs.xsl/36176.html
was founded in January 2005. The institute's objective is to strengthen the macroeconomic focus in economic analysis and policy advice. The IMK analyses the business cycle on the basis of a coherent macroeconomic modelling framework. In their empirical research the IMK's researchers rely on modern Keynesian economic theory as well as state-of-the-art econometric methods.
Euro Area Economic Trends 2006: Time for a New Economic Policy Approach [25 October 2005]
http://www.etui-rehs.org/media/files/imk/time_for_a_new_economic_policy_approach
[full-text, 26 pages]
Abstract:
This is the first twice-yearly forecast produced by the Macroeconomic Policy Institute (IMK) in collaboration with the ETUI-REHS. The report provides a detailed economic forecast for the euro area: for the current year growth of just 1.2% is expected, rising only slightly to 1.5% in 2006. It also contains a study of the economic effects of the oil-price rise, which has seriously depressed the economy. In addition the report makes a number of concrete policy recommendations. In particular it calls on the ECB to cut interest rates by half a percentage point, and urges governments to make use of the scope created by the revisions to the implementation rules for the Stability and Growth Pact in order to ensure that fiscal consolidation does not weaken economic growth further. A proposal is made to set for each country a longer-run cap on non-cyclical government spending that ensures consolidation in the medium run. Finally wage setters are called upon to avoid beggar-thy-neighbour strategies of excessive wage moderation, which are a zero-sum game in the context of the euro area, and instead to anchor price and demand expectations by orienting wage settlements to the medium-rate of national productivity growth plus the inflation target of the ECB.
_____________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
Stuart Basefsky *
Director, IWS News Bureau *
Institute for Workplace Studies *
Cornell/ILR School *
16 E. 34th Street, 4th Floor *
New York, NY 10016 *
*
Telephone: (607) 255-2703 *
Fax: (607) 255-9641 *
E-mail: smb6@cornell.edu *
****************************************
_______________________________
Institute for Workplace Studies
School of Industrial & Labor Relations
Cornell University
16 East 34th Street, 4th floor
New York, NY 10016
________________________________________________________________________
European Trade Union Institute (ETUI) for Research, Education, Health and Safety (REHS)
and the
Hans Boeckler Stiftung's
The Macroeconomic Policy Institute (IMK)
http://www.boeckler.de/cps/rde/xchg/SID-3D0AB75D-972DD24B/hbs/hs.xsl/36176.html
was founded in January 2005. The institute's objective is to strengthen the macroeconomic focus in economic analysis and policy advice. The IMK analyses the business cycle on the basis of a coherent macroeconomic modelling framework. In their empirical research the IMK's researchers rely on modern Keynesian economic theory as well as state-of-the-art econometric methods.
Euro Area Economic Trends 2006: Time for a New Economic Policy Approach [25 October 2005]
http://www.etui-rehs.org/media/files/imk/time_for_a_new_economic_policy_approach
[full-text, 26 pages]
Abstract:
This is the first twice-yearly forecast produced by the Macroeconomic Policy Institute (IMK) in collaboration with the ETUI-REHS. The report provides a detailed economic forecast for the euro area: for the current year growth of just 1.2% is expected, rising only slightly to 1.5% in 2006. It also contains a study of the economic effects of the oil-price rise, which has seriously depressed the economy. In addition the report makes a number of concrete policy recommendations. In particular it calls on the ECB to cut interest rates by half a percentage point, and urges governments to make use of the scope created by the revisions to the implementation rules for the Stability and Growth Pact in order to ensure that fiscal consolidation does not weaken economic growth further. A proposal is made to set for each country a longer-run cap on non-cyclical government spending that ensures consolidation in the medium run. Finally wage setters are called upon to avoid beggar-thy-neighbour strategies of excessive wage moderation, which are a zero-sum game in the context of the euro area, and instead to anchor price and demand expectations by orienting wage settlements to the medium-rate of national productivity growth plus the inflation target of the ECB.
_____________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
Stuart Basefsky
Director, IWS News Bureau
Institute for Workplace Studies
Cornell/ILR School
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641
E-mail: smb6@cornell.edu
****************************************
# posted by SBasefsky : 7:38 AM
