France: Selected Issues

Author: International Monetary Fund

Volume/Issue: Volume 2005 Issue 397

Publication date: November 2005

ISBN: 9781451813654

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Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Finance , Inflation , Labor , Economics- Macroeconomics , ISCR , CR , labor market , worker , core inflation , searching worker meet , underlying inflation , inflation behavior , worker move , vis-à-vis alternative measures , price change , Inflation , Labor markets , Unemployment , Employment protection , Employment , Europe , Global

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Summary

This Selected Issues paper analyzes the recent French inflation behavior. The paper demonstrates that the recent change in French headline inflation behavior resulted from a few idiosyncratic, i.e., transient, factors. The paper describes the model setup and calibration of some crucial economic relations and parameters. The level of competition in labor and product markets in France and the other EU countries is discussed, including the size of markups. The paper also looks into the economic impact of increasing competition in each market separately and the advantages of coordinating reforms within the euro area.