Although the operation of national coordinated wage-bargaining systems in EMU has produced low inflation rates, EMU-wide inflation has been above the ECB target rate for the last 3 years. By contrast, under the ERM, inflation rates declined steadily after 1992 to below 2 per cent in both the...

This paper examines different levels of wage moderation in EMU member states since the introduction of the euro. Most arguments examining wage restraint have done so relying on the assumptions that relations between EMU member states are symmetric and that wage-setting systems are similar across...

During the 1990s, wage setting increasingly became coordinated in many Member States of the European Union (EU), often through new arrangements involving broad encompassing social pacts between employers, trade unions, and governments striking deals across policy areas from wages to social and...