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Professor Stefan Collignon
Makropolitik Workshop 2006 European Integration in Crisis 27/28 October Stefan Collignon
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Plan Some facts The Logic of the SGP The Policy Mix Monetary policy
Professor Stefan Collignon Some facts The Logic of the SGP The Policy Mix Monetary policy Fiscal policy Labour cost What to do with the Eurozone?
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Euroland’s weak economic growth
Lisbon Workshop Professor Stefan Collignon Euroland’s weak economic growth
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Lisbon Workshop Employment Growth Trends Professor Stefan Collignon
USA Euroland
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Lisbon Workshop Professor Stefan Collignon Labour Productivity growth
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Lisbon Workshop Total factor productivity growth
Professor Stefan Collignon Total factor productivity growth
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Lisbon Workshop Professor Stefan Collignon Capital deepening
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Lisbon Workshop Gross Investment Trend Growth
Professor Stefan Collignon Gross Investment Trend Growth
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Horizontal vs vertical flexibility The revised SGP
Lisbon Workshop Professor Stefan Collignon 2. The logic of the SGP Money and economics Price stability Fiscal coordination Optimal policy mix Horizontal vs vertical flexibility The revised SGP
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The facts Professor Stefan Collignon
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The facts Professor Stefan Collignon
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The facts Professor Stefan Collignon
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The facts Professor Stefan Collignon
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The facts Professor Stefan Collignon
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The facts Professor Stefan Collignon
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The facts Professor Stefan Collignon
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The facts Professor Stefan Collignon
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Lisbon Workshop Graph: The Policy Mix deflation Balanced budget
Professor Stefan Collignon Graph: The Policy Mix Real interest rate deflation Balanced budget Efficiency line A Indifference curve A positive supply shock shifts the efficiency line up Inflation – +
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Lisbon Workshop Monetary policy USA Euroland 4 3
Professor Stefan Collignon Monetary policy USA Euroland 4 Pro-cyclical tightening: 8 3 Counter-cyclical loosening: 9
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Lisbon Workshop Fiscal policy USA Euroland 8 5
Professor Stefan Collignon Fiscal policy USA Euroland 8 Pro-cyclical tightening: 6 5 Counter-cyclical loosening: 5
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Policies Professor Stefan Collignon
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Lisbon Workshop Fiscal-Monetary Mix USA Euroland 6 8 10 6 Loose/loose
Professor Stefan Collignon Fiscal-Monetary Mix USA Euroland Tight/tight Clinton/Greenspan policy mix 6 8 Loose/loose 10 6 More active macroeconomic policy in USA: Positive supply shift in second half of 1990s Restricted macroeconomic policy in Europe: demand shocks dominate, no supply effects
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Unit Labour Cost Inflation
Professor Stefan Collignon Lisbon Workshop Unit Labour Cost Inflation
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Professor Stefan Collignon
Lisbon Workshop Unit Labour Costs
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Professor Stefan Collignon
Lisbon Workshop Unit Labour Costs
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Exchange rate policies US-Current Account Deficit The role of Asia
Professor Stefan Collignon Lisbon Workshop Exchange rate policies US-Current Account Deficit The role of Asia Development by undervalued exchange rate Negative role of exchange rate volatility Creating a Eurasian currency bloc
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Policies Professor Stefan Collignon
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Exchange Rate Policies
Professor Stefan Collignon Development by undervalued exchange rate
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Exchange Rate Policies
Professor Stefan Collignon Exchange rate volatility The US/DM example
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Europe’s policy tools are insufficient
Conclusion Professor Stefan Collignon Europe’s policy tools are insufficient Lack of European government impedes defining and implementing coherent policies Europe needs a proper European government
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Policies Professor Stefan Collignon
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