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Oil and Vinegar : A Positive Fiscal Theory of the Euro Crisis
Blankart, Charles B. - 2013
Grauwe, 2006). This optimism is, however, not warranted for the euro. The euro has now been in a crisis for more than three … years and a self-correcting mechanism leading out of the crisis is not in sight. The reason is that the euro union does not … economic union. Their governments are financially independent. They “go Dutch”. A currency union, such as the euro union, is …
Persistent link: https://www.econbiz.de/10013074396
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Financial Frictions and Inflation Differentials in a Monetary Union
Hristov, Nikolay - 2010
This paper employs a stylized New Keynesian DSGE model for a monetary union to analyze whether cyclical inflation differentials can be explained by cross-country differences concerning the characteristics of financial markets. Our results suggest that empirically plausible degrees of...
Persistent link: https://www.econbiz.de/10013136243
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The Fragility of Two Monetary Regimes : The European Monetary System and the Eurozone
Ji, Yuemei - 2013
We analyze the similarities and the differences in the fragility of the European Monetary system (EMS) and the Eurozone. We test the hypothesis that in the EMS the fragility arose from the absence of a credible lender of last resort in the foreign exchange markets while in the Eurozone it was...
Persistent link: https://www.econbiz.de/10013072510
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Fiscal Rules, Financial Stability and Optimal Currency Areas
De Grauwe, Paul - 2015
In this paper we suggest that Eurozone countries face a policy trade-off among: 1) a common rule imposing co-movements in fiscal policy; 2) financial stability; and 3) financial integration. We provide empirical evidence documenting the existence of such a trade-off in the period characterized...
Persistent link: https://www.econbiz.de/10013020581
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Revenue for EMU : A Contribution to the Debate on Fiscal Union
Iara, Anna - 2016
In the wake of the euro area crisis, the debate on instruments to deepen economic integration among its members has …
Persistent link: https://www.econbiz.de/10012994790
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Fiscal Federlism in a Monetary Union : The Cooperation Pitfall
Kempf, Hubert - 2018
Fiscal federalism may not be a panacea in a monetary union if it does not address the non-cooperative behaviour between fiscal policymakers. To prove this, we assess the relative merits of a fiscal federalism scheme in a monetary union and intergovernmental fiscal cooperation without such a...
Persistent link: https://www.econbiz.de/10012930695
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Catching-Up, Inflation Differentials and Credit Booms in a Heterogeneous Monetary Union : Some Implications for Emu and New EU Member States
MacDonald, Ronald - 2013
In this paper we propose an alternative explanation for the nature, sources and consequences of inflation rate differentials in a monetary union, such as EMU. To achieve this, we build on the new neoclassical synthesis (NNS) framework, recently advanced by Goodfriend (2002) and Goodfriend and...
Persistent link: https://www.econbiz.de/10012754168
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The Exchange Rate Susceptibility of Some European Core Industries and the Currency Union
Leuwer, David; Suessmuth, Bernd - 2021
strengthening Euro on exports and on overall order volume unclear. To quantify the impact of the EUR/USD real exchange rate on … findings indicate that an appreciating Euro hampers exports in the German and French core sectors, but does not cause these …
Persistent link: https://www.econbiz.de/10013315771
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The Role of Fiscal Policy in a Monetary Union : Are National Automatic Stabilizers Effective?
Colciago, Andrea; Muscatelli, Anton; Ropele, Tiziano; … - 2021
We assess the role of national fiscal policies, as automatic stabilizers, within a monetary union. We use a two-country New Keynesian DGE model which incorporates non-Ricardian consumers (as in Gali et al. 2004) and a home bias in the composition of national consumption bundles. We find that...
Persistent link: https://www.econbiz.de/10013317638
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Monetary Union, Even Higher Integration, or Back to National Currencies?
Economides, George - 2016
This paper quantifies the welfare differences among a monetary union, flexible exchange rates (economic disintegration) and a monetary plus fiscal transfer union (higher economic integration). The vehicle of analysis is a medium-scale New Keynesian DSGE model consisting of two heterogeneous...
Persistent link: https://www.econbiz.de/10012996680