Effectiveness of Fiscal Policy Coordination Rules in the Monetary Union
نویسندگان
چکیده
منابع مشابه
Monetary and Fiscal Policy in the European Monetary Union
The introductory phase of the European Monetary Union (EMU) ended with the introduction of the euro currency in 2002. We present a review of the experiences with the new monetary union. Using a Taylor rule, we analyze the conduct of monetary policy by the European Central Bank (ECB). The empirical results suggest that the ECB applies similar weights to inflation and the output gap as the Bundes...
متن کاملMonetary and Fiscal Policy in a Monetary Union
The idea that a common monetary policy in a monetary union imposes costs when compared with independent policies at the country level is largely widespread in the literature. This result leads directly to a greater emphasis on national Þscal policies. We show in this paper that a common monetary policy has more power to asymmetrically affect countries than is usually stated in the literature. A...
متن کاملMonetary and Fiscal Policy Dynamics in an Asymmetric Monetary Union
This paper investigates the dynamic effects of monetary and fiscal policy in a monetary union, which is characterized by asymmetric interest rate transmission. This asymmetry gives rise to intertemporal reversals in the relative effectiveness of policy on member country outputs. The direction and the number of these reversals depend on whether policies are unanticipated or anticipated. We also ...
متن کامل2 Issues in the Coordination of Monetary and Fiscal Policy
Now, as often in the past, there are complaints from all quarters about the lack of coordination between monetary and fiscal policy. Indeed, the feeling that monetary and fiscal policies are acting at cross purposes is quite prevalent. This attitude, I think, reflects dissatisfaction with the current mix of expansionary fiscal policy and contractionary monetary policy, which pushes aggregate de...
متن کاملOverturning Mundell: Fiscal Policy in a Monetary Union
Central to ongoing debates over the desirability of monetary unions is a supposed trade-off, outlined by Mundell [1961]: a monetary union reduces transactions costs but renders stabilization policy less effective. If shocks across countries are sufficiently correlated, then, according to this argument, delegating monetary policy to a single central bank is not very costly and a monetary union i...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Equilibrium
سال: 2012
ISSN: 2353-3293,1689-765X
DOI: 10.12775/equil.2012.020