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How Do Monetary and Fiscal Policy Interact in the European Monetary Union?

Canzoneri, Matthew B. - 2012

Formation of the Euro area raises new questions about the coordination of monetary and fiscal policy. Using a New …

Persistent link: https://www.econbiz.de/10013100660

Feldstein, Martin S. - 2013

This paper examines the sources of current conflict within the EU and the EMU. The topics discussed include the recent ECB policy of bond buying (the OMT policy), the attempts to advance the "European Project" of stronger political union (the fiscal compact, the banking union, and the proposals...

Persistent link: https://www.econbiz.de/10013089018

The Optimal Currency Area in a Liquidity Trap

Cook, David E. - 2013

Open economy macro theory says that when a country is subject to idiosyncratic macro shocks, it should have its own currency and a flexible exchange rate. But recently in many countries policy rates have been pushed down close to the lower bound, limiting the ability of policy-makers to...

Persistent link: https://www.econbiz.de/10013073571

The Endogeneity of the Optimum Currency Area Criteria

Frankel, Jeffrey A.; Rose, Andrew - 2021

A country's suitability for entry into a currency union depends on a number of economic conditions. These include, inter alia, the intensity of trade with other potential members of the currency union, and the extent to which domestic business cycles are correlated with those of the other...

Persistent link: https://www.econbiz.de/10013249558

Optimal Currency Areas

Alesina, Alberto; Barro, Robert J.; Tenreyro, Silvana - 2021

dollar, the euro, or the yen. Although there appear to be reasonably well-defined euro and dollar areas, there does not seem …

Persistent link: https://www.econbiz.de/10013233010

Currency Unions

Alesina, Alberto; Barro, Robert J. - 2021

What is the optimal number of currencies in the world? Common currencies affect trading costs and, thereby, the amounts of trade, output, and consumption. From the perspective of monetary policy, the adoption of another country's currency trades off the benefits of commitment to price stability...

Persistent link: https://www.econbiz.de/10013214585

Participation in a Currency Union

Casella, Alessandra - 2008

When countries of different sizes participate in a cooperative agreement, the potential gain from deviation determines the minimum power that each country requires in the common decision-making. lt;brgt;lt;bRgt;This paper studies the problem in the context of a monetary union - multiple...

Persistent link: https://www.econbiz.de/10012774523

Aftershocks of Monetary Unification : Hysteresis with a Financial Twist

Bayoumi, Tamim A. - 2017

currency area than the Euro Area. More intriguingly, the Euro Area shows striking changes in correlations and responses which … demand shocks to reinforce each other. An implication is that if the Euro Area wishes to avoid financial booms and busts it …

Persistent link: https://www.econbiz.de/10012962173

The Estimated Effects of the Euro on Trade : Why are They Below Historical Effects of Monetary Unions Among Smaller Countries?

Frankel, Jeffrey A. - 2021

others used the gravity model on a much smaller data set to estimate the effects of the euro on trade among its members. The … that were estimated in the euro's first four years hold up in the second four years? The answer is yes. Second, and more … explanations for the gap between 15% and 200%. First, lags. The euro is still very young. Second, size. The European countries are …

Persistent link: https://www.econbiz.de/10013236830

Exchange Rate Pass-Through and the Welfare Effects of the Euro

Devereux, Michael B.; Engel, Charles; Tille, Cédric - 2021

. The main issue we focus on is how the euro may alter the responsiveness of consumer prices to exchange rate changes. Our … central conjectures is that the acceptance of the euro will lead European prices to become more insulated from exchange …

Persistent link: https://www.econbiz.de/10013243930