Full Employment and High Growth in Europe : A New Cycle of Reforms to Play a Leading Role in the New World Economy

Mario Baldassarri and Francesco Busato evaluate the impact produced by a new cycle of structural reforms over European Union economies. The structural reforms concern the size and the composition of government expenditure, the good and services markets, and the labour market. The book illustrates how the key challenge for European countries is not to discuss how policies could be implemented (e.g. fiscal policy competition vs fiscal policy coordination), but to implement them. Cover......Page 1 Contents......Page 6 List of Figures......Page 8 List of Tables......Page 13 Acknowledgments......Page 14 PART ONE: INTRODUCTION AND CONCLUSIONS......Page 16 1.1 A Theoretical Error and an Empirical Misconception.......Page 18 1.2 Previous Researches on the Italian Economy: is there any Meaningful Message for Europe?......Page 20 1.3 A Confused European Debate: Never-ending Coordination or Coordination with an End.......Page 23 1.4 Full Employment in Europe: Mission Possible!......Page 24 1.5 The Basic Message to Reach a High and Stable Growth: Reform, Reform, Reform.......Page 27 1.6 How to Respect the Stability Pact and Live Happily in Europe.......Page 29 1.7 There is a Problem in the World Economy, and there is a Problem in Europe.......Page 32 PART TWO: THEORETICAL BACKGROUND, EUROPEAN UNION GUIDELINES, AND EMPIRICAL EVIDENCES......Page 44 2.1 Basic Themes on Macro and Microeconomics.......Page 46 2.2 Economic Growth and Government Budget.......Page 47 2.3 Economic Growth and Social Equity.......Page 51 2.4 A Microeconomic Caveat.......Page 56 3.1 Economic Policy after the Euro.......Page 61 3.2 Four Crucial Aspects.......Page 62 3.3 In Summary.......Page 64 4.1 Europe and the United States: Economies Face to Face.......Page 66 4.2 A Brief Journey into Europe of the 1990s: Two Europes in Europe ...or even Three?......Page 72 4.3 Which correlations: Dr. Watson or Sherlock Holmes?......Page 88 PART THREE: ECONOMIC POLICIES FACE TO FACE......Page 106 5.1 The International Economic Outlook.......Page 108 5.2 Alternative Strategies.......Page 111 6.1 Shock and Gradual Monetary Policy.......Page 113 6.2 The Impact on Euroland.......Page 114 7.2 Higher Spending, Higher Taxes and No Reforms.......Page 132 8.1 The Triangle of Reforms.......Page 149 8.2 Growth and Full Employment: the "Do-It-Yourself" Model.......Page 154 8.3 Better Off Alone and in Bad Company... or in Good Company......Page 175 8.4 Lower Spending, Lower Taxes, and ... Lower Interest Rates.......Page 184 8.5 No Room For Foul Play: the Illusion of Free-Riding.......Page 205 8.6 And If the World Slows Down.... More Reforms in Europe.......Page 215 9. Appendix......Page 229 10. References......Page 262 11. Index......Page 266 Mario Baldassarri and Franceso Busato evaluate the impact produced by a new cycle of structural reforms over European Union economy as an aggregate, and over single European countries. The structural reforms concern the size and the composition of government expenditure, the good and services markets, and the labor market. Different policies are evaluatedin the book, including the cases of fiscal policy coordination, of fiscal policy competition, of monetary policy, and of free riding. The results obtained clearly suggest that structural reforms are required for Europe to play a leading role in the new world economy. The key challenge for European countries is not to discuss how policies could be implemented (e.g. fiscal policy competition Vs fiscal policy coordination), but to implement them "Full Employment and High Growth in Europe evaluates the impact produced by a new cycle of structural reforms over the European Union economy as a whole, and over single European countries. The structural reforms concern the size and composition of government expenditure, the goods and services markets, and the labour market. Different policies are evaluated, including those of fiscal policy coordination, fiscal policy competition, monetary policy, and free riding."--BOOK JACKET