By Tyler Bollhorn

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And Eichengreen, B. (1992), 'Shocking aspects of European monetary unification', CEPR Discussion Paper, No. 643, Centre for Economic Policy Research, London. Begg, D. (1991), 'European monetary union - the macro issues', in The Making of Monetary Union, Centre for Economic Policy Research, London. Brittan, L. ', TSB Forum, London. Britton, E. and Whitely, J. (1997), 'Comparing the monetary transmission mechanism in France, Germany and the United Kingdom: some issues and results', Bank of England Quarterly Bulletin, Vol.

And Whitely, J. (1997), 'Comparing the monetary transmission mechanism in France, Germany and the United Kingdom: some issues and results', Bank of England Quarterly Bulletin, Vol. 37, No. 2, pp. 152-62. Cecchini, P. (1988), The European Challenge: 1992 the Benefits of a Single Market, Wildwood House, Aldershot. Council of Ministers (1992), Treaty on European Union, Office for Official Publications of the European Communities, Luxembourg. Cukierman, A. (1992), Central Bank Strategy, Credibility and Independence, MIT Press.

The available evidence suggests that, while labour market institutions vary across the EU, in general European labour markets are much less flexible than, say, the United States (see for example Heylen and van Poeck, 1995). However, many member governments have begun to promote greater flexibility, encouraged by the successful reforms of the labour market pioneered by the British Conservative Government in the 1980s and the growing tax burden caused by social welfare programmes for the poor and unemployed.

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