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By Professor Dr. Gerhard Fels, Dr. George M. von Furstenberg (auth.), Professor Dr. Gerhard Fels, Dr. George M. von Furstenberg (eds.)

ISBN-10: 3642742777

ISBN-13: 9783642742774

ISBN-10: 3642742785

ISBN-13: 9783642742781

This ebook bargains with supply-side economics and the wanted reorientation it will convey to West German coverage. The swap, urged after looking research, might upload as much as an total approach for releasing markets, for removal government-imposed distortions, and for utilizing free-market techniques to right distortions imposed through strain teams. the tactic might pierce Germany's state-supported encrustations and corporatism. it'll equip the rustic to keep on with the lead of the U.S. and nice Britain in beginning to get away from the tangle during which taxes, laws, and unemployment have grown in step. the upcoming crowning glory of the eu inner industry in 1992 provides urgency to this task.

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The empirical debate turns on whether actual productivity should be included in the wage equation; if it is, it tends to make these variables insignificant in annual (though not necessarily in quarterly) data, otherwise they are statistically significant. Inclusion of such a term in a labour supply function is, however, clearly wrong; though productivity could affect the union markup, in the Layard/Nickell work the markup itself is included directly as an argument, so its determinants are redundant.

That question, however, is essential when it comes to the economic interpretation of current account imbalances. An ex- ternal surplus may indicate sound economic health, provided it coincides with high investment and hence rapid growth and high saving. But this need not necessarily be so. A current account surplus may alternatively reflect comparatively low saving and even lower investment, resulting from a decision to invest in liquid balances rather than in fixed capital equipment. It is generally accepted that in this case one should not regard the current account surplus particularly cheering (W.

It had in fact been longing for them. K. when Margaret Thatcher took office in 1979. " growth was only about half the G-7 average. K. also experienced high inflation and currency depreciation. On the domestic economic policy side the country was preoccupied with incomes policy issues. The situation escalated during the "winter of discontent" in 1978-79. By the time the months-long strikes of a number of major unions were over, the country was ready for a new start. Thatcher, with her supply-side oriented reform program, seemed to offer an effective solution to the grave economic problems of the time.

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A Supply-Side Agenda for Germany: Sparks from - the United States - Great Britain - European Integration by Professor Dr. Gerhard Fels, Dr. George M. von Furstenberg (auth.), Professor Dr. Gerhard Fels, Dr. George M. von Furstenberg (eds.)


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