Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/277550 
Year of Publication: 
2022
Citation: 
[Journal:] European Journal of Economics and Economic Policies: Intervention (EJEEP) [ISSN:] 2052-7772 [Volume:] 19 [Issue:] 2 [Year:] 2022 [Pages:] 278-293
Publisher: 
Edward Elgar Publishing, Cheltenham
Abstract: 
Hajo Riese introduced the concept of market constellations to analyse the changing macroeconomic effects of German monetary policy from the 1950s to the 1980s, when monetary policy, focused on internal and external price stability in Germany, enabled continued net export surpluses. Yet changing external conditions supported economic growth only in the 1950s and 1960s, leading to stagflation in the 1980s. Related to approaches based on Riese's concept for more recent decades, the paper argues that the policy response to German unification costs – including labour-market reforms aimed at regaining lost cost competitiveness and reducing high unemployment – triggered a new market constellation, lasting from the mid 1990s until the 2007–2008 global financial crisis. In the context of the European Economic and Monetary Union, this compressed effective demand and supported stagnation, leading overall to negative effects on employment and growth.
Subjects: 
Hajo Riese
market constellation
monetary policy
German exports
cost competitiveness
German unification
labour market reforms
Hartz reforms
unit labour costs
REER
wage-led demand regime
macroeconomic policy regimeF16
J30–32
Persistent Identifier of the first edition: 
Creative Commons License: 
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Document Type: 
Article

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