Eu Monetary Integration With The Problem Of Unemployment Research

In May 1998, European Union (EU) officially confirmed 11 member countreis joining the Monetary Alliance for the first time. In the same year of June, European System of Central Banks (ESCB) was established. ESCB and the member countries of EU have together implemented the sole monetary policy in the whole EU area and started to use Euro as the currency.The Monetary integration of European Union (EU) is an epoch-making event in both of World Economic history and monetary history. It improves economic development of EU greatly. At the same time, it also brings many problems, most serious of which is unemployment. In this paper, I have done some research in the problem of unemployment and monetary integration.At the beginning of the paper, I illuminate the serious, university and long-term situation of unemployment in EU. Through some analyse, I draw a conclusion that the interaction of macroeconomic impact and unflexible labor market system is the most important factor results in the unemployment of EU.The supply and demand balance analysis is an important analysis method of economic theory. In the paper, after a simple labor demand and supply curve analyse, some conditions that influence the unemployment of EU are layed out. Including tax on labor, price of nonwage cost, the power of trade union, etc.Then it analyses how Monetary Integration of EU effect the unemployment on those factor. It is really complex. I explain how Monetary Integration effects the unemployment by these three aspects as followed. Fistly, Enterprise's price decision and the competition behavior. Secondly, the trade union and the wages. Thirdly, the economic policy of EU. On the one hand, the process of Monetary integration intensifies the extant unemployment question. On the other hand, it also creates the condition for the finally solution of unemployment question. Whether the unemployment problem will be solved or not, is mainly relies on the reform of tax system and the social security system.At the last part of the paper, it explains the current employment policy of EU. With the...