Giuseppe Bertola // Universität Turin
Sources and Implications of Labour Policy Reforms
ZEW Lectures on Economic PolicyWithin the eurozone large international imbalances were accumulated before the crisis and have since proven difficult to unwind. Economic theory predicts that capital outflows should be associated with labor market deregulation, as was the case in EMU, and helps interpret inequality developments and policy tensions in that experience. Policymakers should be aware that patterns of relative labour market regulation are equally important in the aftermath of the crisis.
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