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Sir Christopher Pissarides 2010 co-recipient of the Nobel Memorial Prize in Economic Sciences; Regius Professor of Economics, London School of Economics
Sponsors: Greek Study Group
The European countries using the euro as their currency (the Eurozone) entered a recession in 2008 like the rest of the industrialized world but are still in it, with only small signs emerging that a recovery is beginning. Many blame the structure of labor markets for the prolonged recession. Closer examination shows that although many member-countries’ labor markets need reform, more blame for the prolonged recession should be placed on inappropriate monetary and fiscal policies adopted to manage the single currency in the crisis.