Document Type

Master's Culminating Experience

Publication Date



This report analyzes the macroeconomic conditions for 15 OECD European countries for the second half of the 1980's. The study methodology begins by comparing Europe's aggregate economic performance against that of the United States and Japan for the 1985-89 period. A concentrated effort is made to analyze and explain the factors causing the comparatively high European unemployment rates. The report also reviews various political and economic sources to document the recent trends of 1985, 1986, and three quarters of 1987 for each of the following 15 European countries: Austria, Belgium, Denmark, Finland, France, West Germany, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and United Kingdom (U.K.). It then extrapolates the 1988 major occurrences and macroeconomic movements.

The report concludes that European economic growth has kept pace with growth in the United States and Japan in the 1980's . However, behavior in the unemployment pattern in Europe has been different for post-1986 than it was prior to 1986. In the post-1986 period, the unemployment in Europe has been declining in a way that is consistent with the macroeconomic theory, while prior to 1986, the European unemployment had been rising. Macroeconomic explanations were inadequate to account for the pre-1986 pattern.