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Labor mobility and fiscal policy in a currency union

Baglioni, Angelo; Boitani, Andrea; Bordignon, Massimo - 2014

Labor mobility is commonly taken as a property of an optimal currency area. But how does that property affect the outcome of fiscal policies? We address this issue with a two country - two period model, where both asymmetric and symmetric productivity shocks may hit the countries. We show that...

Persistent link: https://www.econbiz.de/10011774372

Estimating fiscal multipliers in the Eurozone : a nonlinear panel data approach

Perdichizzi, Salvatore - 2017

During the sovereign debt crisis, all euro countries have deployed "austerity packages", believing that they could regain the path of growth implementing structural reforms and cutting government spending. Such policies should have led to an initial decline in GDP followed by recovery and a...

Persistent link: https://www.econbiz.de/10011776481

Public expenditure multipliers in recessions : evidence from the Eurozone

Boitani, Andrea; Perdichizzi, Salvatore - 2018

During the sovereign debt crisis, many Euro countries have deployed "austerity packages" implementing structural reforms and cutting government spending. Such policies should have led to an initial decline in GDP followed by recovery and a reduction of the debt to gdp ratio. Key to this outcome...

Persistent link: https://www.econbiz.de/10011818399

Transmission of government spending shocks in the Euro area : time variation and driving forces

Kirchner, Markus; Cimadomo, Jacopo; Hauptmeier, Sebastian - 2010

This paper provides new evidence on the effects of government spending shocks and the fiscal transmission mechanism in the euro area for the period 1980-2008. Our contribution is two-fold. First, we investigate changes in the macroeconomic impact of government spending shocks using time-varying...

Persistent link: https://www.econbiz.de/10011380027

COVID-19 helicopter money, monetary policy and Central Bank independence : economics and politics

Masciandaro, Donato - 2020

This article discusses a form of fiscal monetization that produces losses in the central bank's balance sheet, without a permanent increase in the money base. If an independent central bank acts as a long-sighted policymaker, an optimal helicopter monetary policy can be identified. At the same...

Persistent link: https://www.econbiz.de/10012210740

The ECB and the cost of independence : unearthing a new doom-loop in the European Monetary Union

Marozzi, Armando - 2021

Persistent link: https://www.econbiz.de/10012521651

Nonlinearities and expenditure multipliers in the Eurozone

Boitani, Andrea; Perdichizzi, Salvatore; Punzo, Chiara - 2020

We analyze the non-linear effects of government spending for the Euro area in recession, by using local projection method and by testing whether the impact of the shock depends crucially on the levels of public debt or the depth of the recession. We provide three insights. First, expenditure...

Persistent link: https://www.econbiz.de/10012230793

Private and public risk sharing in the Euro area

Cimadomo, Jacopo; Furtuna, Oana; Giuliodori, Massimo M. - 2017 - This version: 11 July 2017

This paper investigates the contribution of private and public channels for consumption risk sharing in the EMU over … estimating how risk sharing has evolved since the start of the EMU, and in particular during the recent crisis. Our results … suggest that, whereas in the early years of the EMU only about 40% of output shocks were smoothed, in the aftermath of the …

Persistent link: https://www.econbiz.de/10011688776

The trade and FDI effects of EMU enlargement

Brouwer, Jelle; Paap, Richard; Viaene, Jean-Marie - 2007

European Monetary Union (EMU) to the 10 countries that obtained EU membership in 2004. One-way and two-way error component …. Using a simulation-based technique, we find that estimates of FDI effects of EMU range between 18.5% for Poland and 30% for …

Persistent link: https://www.econbiz.de/10011372974

The importance of accounting for time trends when estimating the Euro effect on trade

Bun, Maurice J. G.; Klaassen, Franc - 2004

To study the effect of the euro on international goods trade one typically estimates a panel model for the level of trade. Trade levels increase over time, and we show that this is not fully explained by the included regressors. Because the euro is only present at the end of the sample, this may...

Persistent link: https://www.econbiz.de/10011334328