@techreport{Bofinger2003Monetary,
abstract = {In this paper we carry over a static version of a New Keynesian Macro Model developed in previous papers (see Bofinger, Mayer, and Wollmersh\"{a}user 2002) to a monetary union. For a  similar approach see (Uhlig 2002). We will show in particular that a harmonious functioning of a monetary union critically depends on the correlation of shocks that hit the currency area.  Additionally a high degree of integration in product markets is advantageous for the ECB as it prevents that national real interest rates can drive a wedge between macroeconomic outcomes  across member states. In particular small countries are in a vulnerable position exposed to asymmetric shocks and therefore in need for fiscal policy as an independent stabilization agent  with room to breath.},
address = {W\"{u}rzburg},
author = {Peter Bofinger and Eric Mayer},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {E50; E60; H70; 330; Monetary policy; inflation targeting; fiscal policy; policy coordination; free-riding; Geldpolitik; Finanzpolitik; Internationale wirtschaftspolitische Koordination; Ungleichgewichtstheorie; Phillips-Kurve; Europ\"{a}ische Wirtschafts- und W\"{a}hrungsunion; Theorie},
language = {eng},
number = {40},
publisher = {Univ., Lehrstuhl f\"{u}r VWL 1},
title = {Monetary and fiscal policy interaction in the Euro area with different assumptions on the Phillips curve},
type = {W\"{u}rzburg economic papers},
url = {http://hdl.handle.net/10419/48454},
year = {2003}
}
