Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/22004
Authors: 
Clausen, Volker
Wohltmann, Hans-Werner
Year of Publication: 
2005
Series/Report no.: 
Economics working paper / Christian-Albrechts-Universität Kiel, Department of Economics 2005,18
Abstract: 
This paper analyzes the dynamic effects of anticipated monetary and fis- cal policies in a large monetary union, which is characterized by asym- metric interest rate transmission. We explicitly solve the asymmetric three-country model using the decomposition methods of Aoki (1981) and Fukuda (1993). Anticipated monetary and fiscal expansions lead to negative international spillovers and to intertemporal reversals in the re- lative effectiveness of policy on member country outputs. Intertemporal international coordination of monetary policies between Euroland and the US is able to stabilize the output adjustment processes induced by an anticipated unilateral fiscal expansion.
Subjects: 
Monetary Union
Fiscal Policy
Monetary Policy
Policy Coordination
JEL: 
F41
E58
Document Type: 
Working Paper

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