Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/154421
Authors: 
Corsetti, Giancarlo
Dedola, Luca
Jarociński, Marek
Maćkowiak, Bartosz
Schmidt, Sebastian
Year of Publication: 
2016
Series/Report no.: 
ECB Working Paper 1988
Abstract: 
The euro area has been experiencing a prolonged period of weak economic activity and very low inflation. This paper reviews models of business cycle stabilization with an eye to formulating lessons for policy in the euro area. According to standard models, after a large recessionary shock accommodative monetary and fiscal policy together may be necessary to stabilize economic activity and inflation. The paper describes practical ways for the euro area to be able to implement an effective monetary-fiscal policy mix.
Subjects: 
eurobond
government bonds
joint analysis of fiscal and monetary policy
lower bound on nominal interest rates
self-fulfilling sovereign default
JEL: 
E31
E62
E63
Document Type: 
Working Paper

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