I estimate regime-dependent spillover effects from government spending shocks across the members of the European Monetary Union (EMU). I use panel regressions for a total of 14 EMU economies from 1997 to 2022. Government spending shocks are defined by unexpected innovations to forecast...

We show that a .scal expansion by the core economies of the euro area would have a large and positive impact on periphery GDP assuming that policy rates remain low for a prolonged period. Under our preferred model speci.cation, an expansion of core government spending equal to one percent of...

This paper studies monetary and fiscal policies in the euro area. It discusses the process of policy competition and the structure of policy cooperation. As to policy competition, the focus is on competition between the European central bank, the German government, and the French government. As...