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Diskussionspapiere
Macroeconomic co-ordination
as an economic policy concept –
opportunities and obstacles in the EMU
Eckhard Hein and Achim Truger
WSI Discussion Paper No. 125
June 2004
Eckhard Hein, Achim Truger
WSI in der Hans Boeckler Stiftung
Hans Boeckler Str. 39
40476 Duesseldorf
Germany
eckhard-hein@boeckler.de, achim-truger@boeckler.de
This paper and further WSI Discussion Papers can be downloaded from: www.wsi.de.
Macroeconomic co-ordination as an economic policy concept
*
– opportunities and obstacles in the EMU
Eckhard Hein and Achim Truger
Abstract
This paper traces the euro zone’s inadequate macroeconomic performance in recent years
back to the predominance of a restrictive macroeconomic policy mix based on a ‘new
monetarist’ approach to economic policy. An approach based on a (post-)Keynesian analysis
is presented as a growth and employment-oriented alternative to this restrictive policy mix.
Contrary to the strict assignment of macroeconomic goals to the macroeconomic policy actors
and their instruments in the ‘new monetarist’ approach, the alternative requires the co-
ordination of monetary, fiscal and wage policies in order to achieve growth, high employment
and price stability. The paper examines the opportunities for and the obstacles to
macroeconomic co-ordination given by the institutional framework of the European Monetary
Union.
JEL classification: E61, E63, E64, E65
Keywords: Macroeconomic policy co-ordination, European Monetary
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