Summary This paper examines the spillovers of domestic fiscal expansion in a monetary union. Such a policy action leads to cross-country crowding-out effects on the one hand and cross-country multiplier effects on the other. The overall effect is indeterminate a priori. The approach pursued is...

Summary The paper analyzes the dynamic effects of anticipated symmetric demand and supply side policies within the framework of a macroeconomic model of a small monetary union, which is characterized by asymmetric wage adjustment equations of Phillips’ curve type. It is shown that an...

Purpose – There is a growing consensus that monetary policy occupies a primary position in macroeconomic management. This study aims to analyse how monetary policy performed in a sample of Caribbean countries. Design/methodology/approach – The paper uses a univariate analysis on the price...

Purpose – This article attempts to unravel the ways in which New Labour's economic and social policies differ from those of previous Conservative and Labour administrations. Design/methodology/approach – The article analyses Treasury documents, which outline the philosophy underpinning the...

Purpose – The Saint Valentine's Decree (1984) and the ensuing hard‐fought referendum (1985), which reduced the automatisms of scala mobile , started a process of redefinition of wage fixing in Italy, which culminated with the final abolition of scala mobile (1992) and the approval of...

Abstract This paper studies the issue of price stability in a continuous time optimizing general equilibrium model with overlapping generations. It is shown that fiscal policy has effects on nominal variables. Fiscal expansions are inflationary even when the government intertemporal budget...

Abstract The paper analyzes the question why the U.S. economy in the 2000:4--2004:3 period was sluggish in light of the large expansionary fiscal and monetary policies that took place. The answer does not appear to be that there were large structural changes in the economy or systematic bad...