SLIDE 1
Contents
- 1. Some stylized facts on Germanys External
Imbalance
- 2. Wages and External Imbalances
- 3. Simulation on IMK Model
- 4. Conclusions
2
CHALLENGES TO INTEGRATED LABOUR MARKETS Presentation at INET - - PowerPoint PPT Presentation
CHALLENGES TO INTEGRATED LABOUR MARKETS Presentation at INET - - PowerPoint PPT Presentation
CHALLENGES TO INTEGRATED LABOUR MARKETS Presentation at INET conference 2018 Edinburgh, October 22 Contents 1. Some stylized facts on Germanys External Imbalance 2. Wages and External Imbalances 3. Simulation on IMK Model 4. Conclusions 2
SLIDE 2
SLIDE 3
External Balance
3
SLIDE 4
Current Account Balance
4
SLIDE 5
Germanys Current Account Surplus within EMU
Billions EUR
5
SLIDE 6
Wages and Net Exports
6
Nominal Wages Productivity Unit Labour Cost Export Prices Domestic Prices Exports Foreign Demand Domestic Demand Imports Net Exports
SLIDE 7
Wages and Net Exports
7
Nominal Wages Productivity Unit Labour Cost Export Prices Domestic Prices Exports Foreign Demand Domestic Demand Imports Net Exports Fiscal Policy
SLIDE 8
Trade Balance and Current Account
8
Real Exports Export Prices Real Imports Import Prices Trade Balance Net Income Net Current Transfers Current Account Nominal Exports Nominal Imports
SLIDE 9
Higher Wages
9
SLIDE 10
Wage Shock and Fiscal Policy Shock
10
SLIDE 11
Conclusions
- 1. Wage Adjustment is not sufficient to balance
the Current Account
- 2. Fiscal Policy must step in.
- 3. Combination of Fiscal Policy and Wage Policy
is best.
- 4. It is still a lengthy process
- 5. As long as there is no federal fiscal level,
national fiscal policy must take into account current account balance.
11
SLIDE 12
Thank you for your Attention
www.imk-boeckler.de
Follow us on Twitter: http://twitter.com/IMKFlash IMK on Facebook: www.facebook.com/institut.mk
12