
Contents
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Comparing Denmark and the Netherlands: Hotbeds for Sheltered Wage Inflation Comparing Denmark and the Netherlands: Hotbeds for Sheltered Wage Inflation
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Social Partners Adjusting to Monetarism in the 1980s Social Partners Adjusting to Monetarism in the 1980s
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Dutch Wage Setting under a Hard Currency Commitment Dutch Wage Setting under a Hard Currency Commitment
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Danish Wage Setting Responds to State-Imposed Austerity Danish Wage Setting Responds to State-Imposed Austerity
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Fiscal Constraints Preserving Wage Moderation in the 1990s Fiscal Constraints Preserving Wage Moderation in the 1990s
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A Temporary Lid for a Boiling Pot: The Convenience of Maastricht A Temporary Lid for a Boiling Pot: The Convenience of Maastricht
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A Long-Term Plan: Denmark’s Permanent Institutionalization of Fiscal Constraints A Long-Term Plan: Denmark’s Permanent Institutionalization of Fiscal Constraints
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Continuity and Change: The Sustainable Danish vs. the Finite Dutch Monetary Constraint Continuity and Change: The Sustainable Danish vs. the Finite Dutch Monetary Constraint
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Government on the Defensive: Monetary Union and Reactive Governance Government on the Defensive: Monetary Union and Reactive Governance
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Consequences of Opting-out: Controlling Public Sector Pay outside EMU Consequences of Opting-out: Controlling Public Sector Pay outside EMU
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4 National Central Banks and Inflation Convergence: Danish and Dutch Corporatism Inside and Outside of Monetary Union
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Published:May 2016
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Abstract
This chapter examines the link between national level, inflation-averse central banks and European Economic and Monetary Union (EMU) regime change, on the one hand, and sheltered sector wage suppression, on the other, by comparing the pre- and post-EMU experiences of Denmark and the Netherlands. Both Denmark and the Netherlands share traditions of corporatism that influence pay and working conditions for the majority of the labor force. Sector-wide bargaining predominates in both countries, with company bargaining also enforcing guidelines established at the sectoral level. They also experienced institutional and economic developments in the 1990s and 2000s that were conducive to sheltered sector wage inflation. This chapter first considers Dutch wage-setting under a hard currency commitment and how Danish wage-setting responded to state-imposed austerity before discussing wage moderation in the private and public sector in both countries throughout the 1990s. It shows that inflationary public sector wage settlements arose only in the Netherlands after EMU entry was secured.
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