This paper examines the welfare implications of a country joining a currency union as opposed to operating in a … to be welfare enhancing, the potential output gain must be the larger, the smaller the country, the larger the difference …

large welfare gains as compared to balanced budget rules. Monetary policy shall focus on maintaining price stability. … problem can be cast in terms of a tractable linear-quadratic setup. The stabilization properties and the welfare implications …

This paper compares the welfare implications of two widely used pricing assumptions in the New-Keynesian literature … order of approximation, in general they might entail different welfare costs at higher order of approximation. In the … special case of non-distorted steady state, the two pricing assumptions imply identical welfare losses to a second order of …

output-inflation tradeoffs and their business cycles are perfectly synchronised. Under supply shocks, welfare implications …