Bulletin 8  APRIL 1985

IN THIS ISSUE...


The international economy is very much the focus of this issue of the Bulletin. Sweder van Wijnbergen analyses the international repercussions of the US fiscal deficit. International labour migration was the subject of a March workshop, organised jointly by CEPR and the Royal Institute of International Affairs. There are also reports of lunchtime meetings on the European Monetary System and international economic policy coordination. Two other lunchtime meetings focussed on the relationship between real wages and unemployment, both in the UK and elsewhere.


Global Crowding Out

Sweder van Wijnbergen, Research Fellow in the International Macroeconomics programme, analyzes the impact of the US fiscal deficit on world interest rates, exchange rates and terms of trade. He pays particular attention to the effects on developing countries.


International Labour Migration

The economics and politics of international capital movements have been analysed extensively; international flows of labour have received less attention. CEPR and the Royal Institute of International Affairs organised a March workshop to explore how economics and foreign policy studies could contribute jointly to the analysis of migration policy.


Economic Policy

The first Panel meeting will be held in June in Paris. A full report of the meeting will appear in the next Bulletin. Further appointments to the Panel and further information about the papers and subscriptions are in this Bulletin.


Lunchtime Meetings

In a February meeting John Ermisch explained how
1970s labour market developments affected birth rates.

Steve Nickell discussed the economic issues underlying the Chancellor's claim that
excessive wage growth has led to higher unemployment in the UK .

Emil Sunley and Mervyn King spoke on the US Treasury's November
tax reform proposals and the lessons they might hold for the UK.

Are there differences across countries in labour market and real wage behaviour which could explain their
differing unemployment rates ? Robert Gordon analyzed this question at a March lunchtime meeting.

March saw the publication of
CEPR's first book, International Economic Policy Coordination . Co-editor Willem Buiter spoke at a March meeting marking the occasion.

Should the UK join the European Monetary System ? David Begg and Charles Wyplosz discussed the EMS from UK and French perspectives at an April meeting.


Discussion Papers


Mervyn King and Jonathan Leape analyze the
portfolio behaviour of the wealthy .

The proportion of the elderly in the UK population is increasing; is there cause for alarm? John Ermisch discusses how
demographic change will affect the UK economy.

Sweder van Wijnbergen explores some of the macroeconomic effects of
foreign aid .

How should we measure an economy's
total energy consumption ? Richard Westoby and David Pearce argue for the desirability of energy utilisation indices based on price weights.

Paul Johnson argues that economic self-sufficiency is not a realistic prospect for
the elderly .

Charles Webster questions whether the
social legislation of the 1930s helped those most in need.

Governments are concerned to accelerate the introduction of new technology. Paul David and Paul Stoneman explore two forms of
technology policy and the factors that determine their effectiveness.

Approximately 400 million people are estimated to be undernourished. Partha Dasgupta and Debraj Ray discuss how the
unequal distribution of assets such as land can lead to involuntary unemployment and malnutrition, even in a competitive market economy.

Barry Eichengreen and Susan Freiwald show how "unofficial' surveys can produce new microdata which illuminate the workings of the
1930s labour market .

Do countries suffer losses when their
citizens emigrate ? Cormac O Grada balances the gains and costs.

Charles Bean tests foreign exchange market efficiency and finds that "news' may play a smaller role in the determination of
exchange rates than is commonly supposed.