Regional wage differentials in the public sector

Masayuki Morikawa 23 November 2014

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After the Global Crisis, some European countries reduced their public sector wages to ensure fiscal sustainability. In Japan, after the Great East Japan Earthquake, the wages of the central government officials were cut for two years to finance the reconstruction expenses. Even in normal times, the appropriate level of public sector wages is debated frequently in every country. Because wages are an important incentive for workers, appropriate wage levels and their structure in the public sector are essential for ensuring the quality and efficiency of public services.

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Topics:  Labour markets

Tags:  fiscal sustainability, global crisis, Public sector wages, public-sector pay, Public sector, private sector, Great East Japan Earthquake, Japan, Europe, agglomeration, spatial equilibrium, wages, wage premia, regional wage differentials

Eurozone recovery: there are no shortcuts

Roberto Perotti 13 September 2014

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The consensus is increasing that austerity has not worked – Europe stands on the edge of deflation and suffers from a deficit of demand. A recent VoxEU proposal (Giavazzi and Tabellini 2014) offers a solution that is widely shared on both sides of the Atlantic – all Eurozone countries should cut taxes simultaneously by 5% of GDP, and the ECB should buy the extra debt without sterilisation. This should be accompanied by a credible plan to reduce government spending in the future.

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Topics:  Macroeconomic policy Monetary policy

Tags:  austerity, eurozone, monetary policy, helicopter money, quantitative easing, QE, stimulus, fiscal consolidation, fiscal policy, spending cuts, fiscal sustainability, debt monetisation

Why hasn’t Japan’s massive government debt wreaked havoc (yet)?

Charles Yuji Horioka, Takaaki Nomoto, Akiko Terada-Hagiwara 21 January 2014

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The potential sovereign debt crisis in Japan looks even grimmer than those in the Eurozone economies if one looks only at the gross general government debt-to-GDP ratio. According to the OECD, this ratio ranged from 90 to 166% in some developed economies in 2012 (“only” 166% in Greece, 140% in Italy, 139% in Portugal, 123% in Ireland, and 91% in Spain—collectively referred to as the PIIGS economies) but was a full 219% in Japan in the same year.

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Topics:  Financial markets International finance

Tags:  sovereign debt, fiscal sustainability

Why fiscal sustainability matters

Willem Buiter 10 January 2014

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Does fiscal sustainability matter only when there is a fiscal house on fire, as was the case with the Greek sovereign insolvency in 2011–12? Far from it.

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Topics:  Financial markets Global crisis International finance Macroeconomic policy

Tags:  eurozone, sovereign debt, capital flows, financial crisis, credit booms, fiscal policy, emerging markets, global financial crisis, banking, banks, Eurozone crisis, Currency wars, fiscal sustainability, banking union, sovereign debt restructuring, balance-sheet recession

Greece and the fiscal crisis in the Eurozone

Willem Buiter, Ebrahim Rahbari,

Date Published

Tue, 10/12/2010

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http://www.cepr.org/pubs/PolicyInsights/CEPR_Policy_Insight_051.asp

CEPR Policy Insight No.51 can be downloaded free of charge from the CEPR website here.

Tags
eurozone, bail-out, sovereign default, fiscal sustainability

Greece and the fiscal crisis in the Eurozone

The Editors 12 October 2010

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The saga of the Greek public finances continues. But this time, Greece is not the only country that suffers from doubts about the sustainability of its fiscal position. Quite the contrary. The public finances of most countries in the Eurozone are in a worse state today than at any time since the industrial revolution, except for wartime episodes and their immediate aftermaths. And the problems are not confined to the Eurozone, extending to other EU member states, like the UK and Hungary, Japan, and the US.

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Topics:  Macroeconomic policy

Tags:  eurozone, bail-out, sovereign default, fiscal sustainability

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