Labour Market Deregulation

Labour Market Deregulation – Positively related to current account surpluses research finds

In theory, labour market deregulation has two effects on an open economy’s current account balances. To the extent that it fosters future growth, it decreases current savings by consumption-smoothing households that anticipate an increase in their future income, and tends to make the current account more negative. But by making labour income flows more uncertain, … Continue reading →