Veranstaltungen des DIW Berlin/
Events of DIW Berlin

18 January 2017

DIW Seminar on Macroeconomics and Financial Markets Labor market reforms and current account imbalances - beggar-thy-neighbor policies in a currency union?

Member countries of the European Monetary Union (EMU) have initiated wideranging labor market reforms in the last decade. This process is ongoing, as countries that are faced with serious labor market imbalances perceive reforms as the fastest way to restore competitiveness within a currency union. This fosters fears among observers about a beggar-thy-neighbor policy that leaves non-reforming countries with a loss in competitiveness and an increase in foreign debt. Using a two-country, two-sector search and matching DSGE model, we analyze the impact of labor market reforms on the transmission of macroeconomic shocks in both non-reforming and reforming countries. By analyzing the impact of reforms on foreign debt, we contribute to the debate on whether labor market reforms increase or reduce current account imbalances.

More Information
Speaker
  • Timo Baas, University Duisburg-Essen

  • Location
    DIW Berlin (Gustav-Schmoller-Raum) DIW Berlin im Quartier 110 Room 3.3.002A Mohrenstraße 58 10117 Berlin
    Contact(s)
    at DIW Berlin
    Tel.: +49 30 89789 439