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Fiscal and monetary policy rules in an unstable economy

Ryoo, Soon; Skott, Peter - 2015

This paper examines the implications of different monetary and fiscal policy rules in an economy characterized by Harrodian instability. We show that (i) a monetary rule along Taylor lines can be stabilizing for low debt ratios but becomes de-stabilizing if the debt ratio exceeds a certain...

Persistent link: https://www.econbiz.de/10011522169

Structural distortions and decentralized fiscal policies in EMU

Beetsma, Roel; Bovenberg, Ary Lans - 2001

The combination of discretionary monetary policy, labor-market distortions and nominal wage rigidity yields an inflation bias as monetary policy tries to exploit nominal wage contracts to address labour-market distortions Although an inflation target eliminates this inflation bias, it creates a...

Persistent link: https://www.econbiz.de/10011398780

Does it pay to fulfill the Maastricht convergence criteria? : reflections on the public debt and growth nexus for selected European economies

Bökemeier, Bettina; Clemens, Christiane - 2016

the public budget and participation in the Euro-zone. The analysis is based on data of European economies with a special … focus on twelve Euro-zone members and a control group of six non-Euro countries for the years from 1970 to 2014. The results … European economies outside the Euro-zone shows higher growth values for Euro-members than for the control group. Regression …

Persistent link: https://www.econbiz.de/10011557773

The optimal fiscal rule in the context of accession to the Eurozone

Krajewski, Piotr; Mackiewicz, Michał; Piłat, Katarzyna - In: Economic research 28 (2015) 1, pp. 398-406

Persistent link: https://www.econbiz.de/10012220743

Debt Sustainability and Fiscal Space in a Heterogeneous Monetary Union : Normal Times vs the Zero Lower Bound

Andrés, Javier - 2020

In this paper we study fiscal policy effects and fiscal space for countries in a monetary union with different levels of public debt. We develop a dynamic stochastic general equilibrium (DSGE) model of a two-country monetary union, calibrated to match the characteristics of Spain and Germany, in...

Persistent link: https://www.econbiz.de/10012843764

National fiscal stimulus packages and consolidation strategies in a monetary union

Bierbrauer, Christoph - 2017 - This Draft: October 29, 2017

We present a two-country New Open Economy Macroeconomics model of a currency union featuring an overlapping generations structure of the Blanchard (1985)-Yaari (1965) type as well as monopolistic frictions and staggered adjustment in the goods and labor market. We allow for public investment and...

Persistent link: https://www.econbiz.de/10011752148

Is a €10 trillion European climate investment initiative fiscally sustainable?

Kapeller, Jakob; Leitch, Stuart; Wildauer, Rafae - 2021 - This version: November 2021

This policy study asks to what extent large-scale public investment efforts could be a viable tool to provide the necessary infrastructure to break Europe's dependency on fossil fuel and carbon emissions more broadly. We estimate semi-structural VAR models for the EU27. These are used to study...

Persistent link: https://www.econbiz.de/10012667178

Fiscal convergence in the West African Monetary Zone

Olowofeso, Olorunsola E.; John-Sowe, Maimuna; Kargbo, … - 2021

Achieving fiscal convergence between countries of a monetary union helps in the design and implementation of policies to strengthen macroeconomic convergence, which mitigates the contagion effects of macroeconomic instability and ensures the long-term viability of the proposed union. This paper...

Persistent link: https://www.econbiz.de/10013342773

Did fiscal consolidation cause the double dip recession in the euro area?

Heimberger, Philipp - 2015

This paper analyses the short-run effects of fiscal consolidation measures on economic activity in the euro area during the euro crisis. It presents new econometric estimates on the link between cumulative GDP growth and fiscal austerity measures during 2011-2013. The main empirical finding is...

Persistent link: https://www.econbiz.de/10011778844

Public finances solvency in the Euro Area : true or false?

Afonso, António; Coelho, José Carlos - 2022

We assess public finances solvency for Euro Area countries using quarterly data between 1999Q1 and 2020Q4. Through a country-by-country analysis, the answer to the title question is true. For most countries, (i) the primary budget balance reacts positively to the lagged public debt ratio and...

Persistent link: https://www.econbiz.de/10013365375