Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/76650
Authors: 
van Aarle, Bas
Garretsen, Harry
Huart, Florence
Year of Publication: 
2003
Series/Report no.: 
CESifo Working Paper 1042
Abstract: 
This paper studies the design, effects and interactions of monetary and fiscal policies in the euro-area and between the euro-area and the non euro-area. To do so, a stylized three-country model of monetary and fiscal policy rules is constructed. It is analyzed how monetary and fiscal rules affect the adjustment dynamics in the individual euro-area countries, the aggregate euro-area and the US, which is used as a proxy of the non euro-area. Four aspects play an important role in the analysis: (i) the consequences of alternative monetary and fiscal policy rules, (ii) transatlantic spillovers and policy interactions, and the dynamics of the euro and euro-area current account, (iii) the consequences of asymmetries between euroarea countries -asymmetries in macroeconomic shocks, macroeconomic structures or policy preferences-, and between the euro-area and the US, (iv) the role of alternative degrees of backward and forward looking (expectations) in output and inflation.
Subjects: 
EMU
fiscal policy
monetary policy
JEL: 
F31
F41
G15
Document Type: 
Working Paper

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