EMU enlargement and convergence of price levels: Lessons from the German reunification

We analyse the possible impact of EMU enlargement on inflation rates in the accession countries. Using a simple theoretical model we show that the optimal path price adjustments should be asymmetric, i.e. occuring mostly in the candidate countries. Using data from the German reunification we examine how price level convergence could come about. These findings are applied to the enlargement EMU: our findings indicate that (trend) inflation rates in the EMU candidate countries are likely to increase sharply, whereas the impact on the current euro area likely to be small, albeit not negligible. Our results support the need to allow some flexibility in the exchange rate arrangements with the candidate countries facilitate gradual price level convergence prior to EMU enlargement.EMU enlargement, accession countries, inflation, ECB, euro area, Germany, reunification

Has the tradeoff between productivity gains and job growth disappeared?

Policymakers’ efforts to boost trend output growth may be hampered by the presence of a tradeoff between productivity gains and job creation. This paper presents empirical evidence that the negative relationship between productivity growth and employment growth that prevailed in the 1960s and 1970s has disappeared since then. This finding is robust to using alternative measures and including other explanatory variables. The improved tradeoff may be good news for policymakers who aim at raising the ‘speed limit’ of the economy

EMU, Monetary Policy Interactions and Exchange Rate Stability

This memorandum discusses the possible impact of a monetary union in Europe on transatlantic exchange rate stability. EMU leads to the elimination of coordination failures within the euro area. Whether this translates into more stable exchange rates, depends on the origin of the shock. Martin?s (1997) conclusion that EMU will lead to more stable exchange rates is shown to hold for both symmetric and asymmetric shocks in Europe, but not for shocks that originate out-side Europe. The results remain valid when taking into account that the pre-EMU era was characterised by a Bundesbank-led ERM, rather than a free float. Finally, the results are tested for a future expansion of the euro area

The price effects of enhancing services sector competition in a large open economy

This paper studies the price e?ects of shocks to the degree of competition. It is motivated by initiatives to enhance competition in services in the European Union. The paper shows that a higher degree of competition in the nontradable goods sector may have adverse implications for international price competitiveness. It highlights four channels through which enhanced competition in the non-tradable goods sector a?ects the general price level in a large, open economy (lower monopoly rents, lower import prices, higher demand for real money balances, higher wages) and assesses their relative importance algebraically. The conclusions are supportive of the Single Market and point at possible implications for monetary policy

Cross-national comparisons of socioeconomic differences in health indicators

Differences in health between socia-economic groups are a major public health problem. In all European countries for which data are available and for some considerable time now, rates of mortality and morbidity have been found to be higher among groups with a lower income, a lower educational level or a lower occupational classl. Mortality and morbidity rates have been found to be one and a half to four times higher among the most disadvantaged, depending on the population studied and the exact methods used. Moreover, for some countries there is evidence that these differences have increased during the last decades. Studying the causes of these health differences is highly valuable for understanding disease etiology. It may help to identify risk factors for diseases which will not easily be detected in other ways. Moreover, it is essential for designing strategies to reduce socioeconomic differences in health. The latter is not only desirable from the point of view that these differences may, at least pmily, be seen as unfair but also because reducing socio-economic differences in health offers a good opportunity to improve overall health of societies at large

Assessing the degradation mechanisms and current limitation design rules of SICR-based thin-film resistors in integrated circuits

The degradation of SiCr-based thin-film resistors under current and temperature stress and the Joule heating in the resistors are experimentally investigated to set current limitation design rules. Degradation mechanisms, the failure modes, and the impact of the stress test on Temperature Coefficient of Resistance (TCR), are studied with the use of various test structures stressed under different conditions (temperature, current density and direction), followed by optical inspections, Infra-Red imaging and SEM/TEM cross-sections. Electromigration (EM) is found to be the dominating degradation mechanism, but the EM process differs from that in commonly used interconnects. Current accelerating factor and the equivalent activation energy are determined for data extrapolation. To avoid errors in Joule-heating determination from TCR, integrated temperature sensors are employed. Current limitation design rules are deduced based on the EM and Joule heating results

Ambulatory blood pressure monitoring : effect of physical activity

The present thesis deals with the effects of physical activity and body posture on ambulatory BP and systemic haemodynamics in normotensive and hypertensive individuals. The Activity Monitor, i.e., the method used to measure physical activity and posture, is the constant factor in the presented studies. The Activity Monitor is a combination of acceleration sensors mounted on the trunk and legs, a portable data recorder, and analysis software. With this technique, which has been validated in previous studies, physical activity can be quantified and posture (lying, sitting, standing) and type of activity (e.g., general movement, walking) can be automatically detected [56,57]. The method used to measure BP varies between the presented studies. BP was measured intermittently and non-invasively in studies aiming to improve interpretation of ABPM in clinical practice, whereas BP was measured continuously and invasively in studies aiming to determine in detail the effects of physical activity and posture on BP and systemic haemodynamics