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was also rising awareness of Austria's possibilities to influence the decision making processes in Brussels. The Austrian …. Austria's experience with the virtually fixed peg of the schilling to the deutschmark proved to be a vivid training camp for … feasible policy responses also in adverse circumstances. Austria was striving to become an active Member of the EU, mirrored in …
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This paper studies the design of the policy mix in a monetary union, that is, the institutional arrangement specifying the relationships between the various policymakers present in the union and the extent of their capacity of action. It is assumed that policymakers do not cooperate. Detailing...
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We use a dynamic game model of a two-country monetary union to study the impacts of an exogenous fall in aggregate demand, the resulting increase in public debt, and the consequences of a sovereign debt haircut for a member country or bloc of the union. In this union, the governments of...
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Fiscal policy is widely criticized for its failure to act as a stabilizing countercyclical force in the European Monetary Union. Two periods should be distinguished: Prior to the Financial Crisis of 2008, when monetary policy had traction to pursue stability for the aggregate eurozone, fiscal...
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