This sequel to Reform in Eastern Europe reports on one of the most pressing issues for countries with economies in transition and their neighbors. Focusing on the problem of East-West migration, the authors clearly delineate European free trade and capital flows as a means of raising productivity and increasing worker stability in the East and of reducing income gaps between countries.
The authors first outline the problem and recommend that Western Europe begin to admit primary migrants and that the U.S. increase its quotas for them. They then look at migration statistics from previous eras to take into account the long-run and short-run effects of migration in the U.S. and Europe. They conclude with a detailed discussion of "the best defense of all," economic progress, and lay out the necessary conditions for free trade, investment, and aid.
About the Authors
Olivier J. Blanchard is Economic Counselor and Director of the Research Department at the International Monetary Fund. He is the author of Macroeconomics, among other books, and coauthor of Lectures on Macroeconomics (MIT Press).
Paul Krugman is Professor of Economics and International Affairs at Princeton University and a New York Times columnist. He was awarded the Nobel Prize for Economics in 2008.