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Is the Euro Sustainable?
Wickens, Michael R. - C.E.P.R. Discussion Papers - 2007
It is widely recognised that the "one-size-fits-all" monetary policy of the euro-zone is a potential problem. How much … of a problem has not been much investigated. It is argued in this paper that it may result in the euro not being … competitiveness. A formal theory of inflation in the euro-zone based on an open-economy version of the New Keynesian model is used to …
Persistent link: https://www.econbiz.de/10005789110
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The Macroeconomic Costs and Benefits of the EMU and other Monetary Unions: An Overview of Recent Research
Beetsma, Roel; Giuliodori, Massimo - C.E.P.R. Discussion Papers - 2009
. We are primarily interested in Europe’s monetary union. Given that unification entails the loss of a policy instrument … discussion of monetary unification outside Europe. The cost-benefit trade-off of unification may differ substantially between …
Persistent link: https://www.econbiz.de/10008477181
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Optimal Monetary and Fiscal Policy in an Economy with Endogenous Public Debt
Luk, Paul; Vines, David - C.E.P.R. Discussion Papers - 2015
This paper uses a New Keynesian framework to study the coordination of fiscal and monetary policies, in response to an inflation shock when the policymaker acts with commitment. We first show that, in the simplest New Keynesian model, fiscal policy plays no part in the optimal policy response,...
Persistent link: https://www.econbiz.de/10011276383
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Optimal Monetary and Fiscal Policy in an Economy with Inflation Persistence
Luk, Paul; Vines, David - C.E.P.R. Discussion Papers - 2015
This paper studies a simple New-Keynesian model of fiscal and monetary policy coordination when the policymaker acts under commitment. With a New Keynesian Phillips curve it is optimal to control inflation only through the use of monetary policy. But, when price-setters use a Steinsson (2003)...
Persistent link: https://www.econbiz.de/10011276384
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Causality Implications of the Public-Finance Approach to Inflation and Seigniorage
Diba, Behzad; Martin, Philippe - C.E.P.R. Discussion Papers - 1995
Recent empirical tests of dynamic optimal seigniorage models focus on their `smoothing' and long-run implications. The models also imply that the optimal policies are forward looking; that is seigniorage revenues depend on expected future government expenditures. We report causality tests of...
Persistent link: https://www.econbiz.de/10005666468
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Seigniorage
Buiter, Willem H. - C.E.P.R. Discussion Papers - 2007
Governments through the ages have appropriated real resources through the monopoly of the ‘coinage’. In modern fiat money economies, the monopoly of the issue of legal tender is generally assigned to an agency of the state, the Central Bank, which may have varying degrees of operational and...
Persistent link: https://www.econbiz.de/10005792048
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Housing Wealth isn't Wealth
Buiter, Willem H. - C.E.P.R. Discussion Papers - 2008
A fall in house prices due to a change in fundamental value redistributes wealth from those long housing (for whom the fundamental value of the house they own exceeds the present discounted value of their planned future consumption of housing services) to those short housing. In a representative...
Persistent link: https://www.econbiz.de/10005792518
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India's Public Finances: Excessive Budget Deficits, a Government-Abused Financial System and Fiscal Rules
Buiter, Willem H.; Patel, Urjit R. - C.E.P.R. Discussion Papers - 2006
Capital formation is a key driver of the growth of potential output. With continuing widespread capital controls and persistently small inward FDI the volume of capital formation in India is constrained by domestic saving. The national saving rate in India (the sum of the saving rates of...
Persistent link: https://www.econbiz.de/10005123636
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Fiscal Policy, Labour Unions and Monetary Institutions: Their Long Run Impact on Unemployment, Inflation and Welfare
Cukierman, Alex; Dalmazzo, Alberto - C.E.P.R. Discussion Papers - 2007
OBJECTIVES AND MOTIVATION: This paper considers the impact of interactions between fiscal policy and monetary institutions in the presence of unionized labour markets on economic outcomes and welfare in the long run. Two main classes of questions are investigated. First, what is the impact of...
Persistent link: https://www.econbiz.de/10005124139
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Fiscal-Monetary Policy Interactions in the Presence of Unionized Labour Markets
Cukierman, Alex; Dalmazzo, Alberto - C.E.P.R. Discussion Papers - 2005
This paper develops a framework for studying the interactions between labour unions, fiscal policy, monetary policy and monopolistically competitive firms. The framework is used to investigate the effects of labour taxes, the replacement ratio, labour market institutions and monetary...
Persistent link: https://www.econbiz.de/10005124224