This sequel to Reform in Eastern Europe is a report 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 and promote the notion of 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.
As economists who have been deeply and consistently involved in the recent upheavals in the East, the authors are in a position to take a well-informed stance on the economic and social dislocations that are occurring. They first outline the problem and recommend that Europe begin to admit primary migrants and that the US increase its quota. They then look at migration statistics from previous eras to predict equivalent levels in the near future and take into account the long-run and short-run effects of migration in the US 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
Richard Layard is Director of the Centre for Economic Performance at the London School of Economics.
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.
Rudiger Dornbusch is Professor of Economics at the Massachusetts Institute of Technology.
Olivier Blanchard is C. Fred Bergsten Senior Fellow at the Peterson Institute for International Economics, Washington, D.C.