This paper explores the impact of openness, as measured by import penetration, on the size and duration of fiscal multipliers and spillovers across European Union members. The analysis is embedded in a macroeconomic model, NiGEM, to capture structural differences across countries, time and...

In this paper we report the results of a series of internal and external shocks on the Euro Area, using the National Institute’s Global Econometric Model, NiGEM. The differences in impacts across countries are discussed, stressing the role of openness to the rest of the world, the nature of...

The global financial crisis will have a major impact on developed and developing countries alike. The developed and richer developing countries have begun to address the consequences of the crisis and have announced various fiscal stimuli. The G 20 countries have announced fiscal stimuli worth...

New member states will join the EMU in the coming years. Setting the central parity has been and will be a challenging task, as there is a considerable amount of uncertainty, both from a theoretical and an empirical perspective, surrounding the determination of the optimal exchange rate. In...

We survey different strategies in the transition process, and investigate their role in growth prospects. Openness, exchange rate regimes and approaches to trade and capital market liberalisation are examined. Their role in facilitating the diffusion of new products and processes to transition...

Output growth in the Euro Area has been disappointing since the formation of EMU. This may be the consequence of the new monetary and exchange rate arrangements, but it is necessary to remove the effects of other factors such as the growth of labour input, skills, knowledge and risk premia. This...

We argue that the choice of exchange rate regime in the process of accession to the European Union and EMU can affect the growth rate of the economy in the medium term. We discuss the effects of exchange rate choice, and of the timing of transition to EMU on the core accession countries.