The politics of central banks

austerity and unemployment in Europe

Research output: Contribution to journalArticle

7 Citations (Scopus)

Abstract

This article examines the divergences in labour market-performances in four small, open economies: Austria, Belgium, the Netherlands, and Sweden. It argues that great unemployment in Belgium and the Netherlands is partly due to the implementation of deflationary policies during the 1980s. The decline of Keynesian intervention in Belgium and the Netherlands is traced to the institutional independence of their central banks to set monetary and exchange rate policies separate from government. Because the Swedish and Austrian central banks are more integrated in the policy process and their countries are not members of the Common Market or the European Monetary System, social democratic governments have been able to go against the European trend of monetary restrictiveness and fiscal austerity. Accordingly, business in Austria and Sweden is more optimistic about future profit returns and is more willing to invest in productive capital, resulting in lower unemployment. -Author

Original languageEnglish (US)
Pages (from-to)21-48
Number of pages28
JournalJournal of Public Policy
Volume8
Issue number1
StatePublished - 1988
Externally publishedYes

Fingerprint

central bank
unemployment
Belgium
politics
Netherlands
Austria
Sweden
productive capital
exchange rate
labor market
open economy
divergence
social system
market
profit
trend
performance
Europe
policy
economy

ASJC Scopus subject areas

  • Geography, Planning and Development

Cite this

The politics of central banks : austerity and unemployment in Europe. / Kurzer, Paulette.

In: Journal of Public Policy, Vol. 8, No. 1, 1988, p. 21-48.

Research output: Contribution to journalArticle

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