We study the relationship between the change in the cyclically-adjusted primary balance and the change in the output gap. The former variable is taken as an indicator of discretionary fiscal policy. The latter is an indicator of cyclical conditions. We use panel data for the euro area and data...

La crise de la zone euro perdure et menace son existence-même. Est-ce que l’on peut effacer les dettes publiques des pays en grande difficulté, pour les aider à redresser la situation économique plus rapidement et moins douloureusement ? Est-ce que l’on peut mettre en place des...

We study the relationship between the change in the cyclically-adjusted primary balance (an indicator of discretionary fiscal policy) and the change in the output gap (an indicator of cyclical conditions). We use panel data for the euro area and data for 20 individual OECD countries, for the...

We build a two-country open-economy monetary union DSGE model in order to explain some macroeconomic imbalances in the euro area. We fo cus on the role of cyclic al behaviour of public spending and sovereign risk premium. Pro-cyclical primary public expenditures in one country do not lead to...

New Caledonia has a structural trade deficit. Public transfers from the French State amount to a large part of credits in the current account balance. The local currency, the franc XPF, has had a fixed parity against the euro since 1999. In prospect of independence, which would imply a loss (or...

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...

We analyse the international transmission of interest rates by focusing on the role of the accumulation of international reserves and on the financing of sovereign debt. An increase in foreign exchange reserves is expected to moderate the influence of U.S. interest rates. However, a high level...

We empirically assess whether a usually expected negative response of private consumption and private investment to a fiscal consolidation is reversed. We focus on a large sample of 174 countries between 1970 and 2018. We also employ three alternative measures of the Cyclically Adjusted Primary...

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...

This paper evaluates the strength of automatic fiscal stabilizers in European countries by applying to the EU countries Taylor (2000)?'s methodology, which relates the budget balance to the output gap and the structural budget balance. Estimates are provided for the EU and for each of the EU...