Antonio Cabrales, Juan Dolado, Ricardo Mora, Friday, December 5, 2014 - 00:00
Ester Faia, Wolfgang Lechthaler, Christian Merkl, Saturday, February 9, 2013 - 00:00
Eurozone labour markets are under stress. This column explores the connections between labour-market reform and macroeconomic policy, arguing that with its large differences in firing costs, normal Eurozone monetary policy is inappropriate for several Eurozone countries. If the efficacy of the ECB’s policy is impaired because there is no harmonisation of firing costs, tensions will continue to rise within the Eurozone.