Monetary integration and the national adjustment process, macroeconomic policies of deflation in a small open economy : the case Denmark
| dc.contributor.author | HOIBERG-NIELSEN, Jens | |
| dc.date.accessioned | 2006-06-09T08:20:00Z | |
| dc.date.available | 2006-06-09T08:20:00Z | |
| dc.date.issued | 1983 | |
| dc.description | Defence date: 1 June 1983 | |
| dc.description | First made available online: 17 September 2015 | |
| dc.description.abstract | Monetary integration theory, of mainly a monetarist orientation, from the last decade, tends to show the adjustment process to uniform rates of domestic inflation as a mechanistic outcome of a harmonization of national supplies of credits. This belief that credit restraint is the panacea for balance of payments disequilibria is based on the dictum that the exchange rate is the relative price of two monies, hence the adjustment process is mainly a question of having national money supplies converging. Indeed the present study shows that the adjustment process for a small inflation prone open economy is far more complicated. The process is burdensome and tedious, and by interpreting external disequilibria as a fiscal phenomenon, this study suggests that a broader range of instruments be used. The previous over reliance on restrictive monetary policies combined with a high degree of short to medium term autonomy for fiscal policy have had serious structural repercussions by changing the pattern of production and consumption for the economy. The resulting squeeze on the tradeables sector as a direct result of restrictive monetary policies, shifts the adjustment burden from the nontradeables sector to the tradeables sector. The result, as demonstrated in the present study, is a chronic expansion of the public sector, which in turn makes future adjustment yet more difficult. The chances are now that the economy will experience a new variety of a "vicious circle", from overvaluation of the currency to a permanent expansion of the public sector. | en |
| dc.description.tableofcontents | -- 1. Introduction -- 2. Monetary integration and the national adjustment process. The scope for analysis -- 3. Smallness and openness of an economy, and their implications for the effectiveness of domestic macroeconomic policies -- 4. Micro- and macroeconomic conditions for monetary integration -- 5. Adjustment policies in a currency area. A clarification of some central issues -- 6. The coordination of national economic policies inside a currency area -- 7. The economic effects of an over reliance on tight monetary and lax fiscal policies -- 8. Exchange rate movements, competitiveness and public sector deficits. A comparative analysis -- 9. Towards a reinterpretation of the 'Central problem' of monetary integration. The balance of payments as a fiscal phenomenon. The case of Denmark -- 10. Summaries and conclusions | en |
| dc.format.mimetype | application/pdf | |
| dc.identifier.citation | Florence : European University Institute, 1983 | en |
| dc.identifier.doi | 10.2870/580360 | |
| dc.identifier.uri | https://hdl.handle.net/1814/4956 | |
| dc.language.iso | en | en |
| dc.publisher | European University Institute | en |
| dc.relation.ispartofseries | EUI | en |
| dc.relation.ispartofseries | ECO | en |
| dc.relation.ispartofseries | PhD Thesis | en |
| dc.rights | info:eu-repo/semantics/openAccess | |
| dc.subject.lcsh | Fiscal policy -- European Union countries | |
| dc.subject.lcsh | Europe -- Economic integration | |
| dc.subject.lcsh | Balance of payments -- Denmark | |
| dc.title | Monetary integration and the national adjustment process, macroeconomic policies of deflation in a small open economy : the case Denmark | en |
| dc.type | Thesis | en |
| dspace.entity.type | Publication | |
| eui.subscribe.skip | true |
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