The Euro and Structural Reforms
This paper investigates whether or not the adoption of the Euro has facilitated the introduction of structural reforms, defined as deregulation in the product markets and liberalization and deregulation in the labor markets. After reviewing the theoretical arguments that may link the adoption of the Euro and structural reforms, we investigate the empirical evidence. We find that the adoption of the Euro has been associated with an acceleration of the pace of structural reforms in the product market. The adoption of the Euro does not seem to have accelerated labor market reforms in the "primary labor market;" however, the run up to the Euro adoption seems to have been accompanied by wage moderation. We also investigate issues concerning the sequencing of goods and labor market reforms.
Non-Technical Summaries
- In countries preparing to enter the Euro during the period from 1993 to 1998, there have indeed been signs of substantial wage moderation...
Published Versions
Alberto Alesina & Silvia Ardagna & Vincenzo Galasso, 2011. "The Euro and Structural Reforms," Review of Economics and Institutions, Università di Perugia, Dipartimento Economia, Finanza e Statistica, vol. 2(1). citation courtesy of 
The Euro and Structural Reforms, Alberto Alesina, Silvia Ardagna, Vincenzo Galasso. in Europe and the Euro, Alesina and Giavazzi. 2010
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