Download or read book Strategic Policy Interactions in a Monetary Union written by Michael Carlberg and published by Springer Science & Business Media. This book was released on 2009-03-10 with total page 263 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book studies the strategic policy interactions in a monetary union. The leading protagonists are the European Central Bank and national governments. The target of the ECB is low inflation in Europe. The targets of a national government are low unemployment and a low structural deficit. There are demand shocks, supply shocks, and mixed shocks. There are country-specific shocks and common shocks. This book develops a series of basic, intermediate, and more advanced models. Here the focus is on the Nash equilibrium. The key questions are: Given a shock, can policy interactions reduce the existing loss? And to what extent can they do so? Another topical issue is policy cooperation. To illustrate all of this there are a lot of numerical examples. The present book is part of a larger research project on European Monetary Union, see the references given at the back of the book. Some parts of this project were presented at the World Congress of the International Economic Association, at the International Conference on Macroeconomic Analysis, at the International Institute of Public Finance, and at the International Atlantic Economic Conference. Other parts were presented at the Macro Study Group of the German Economic Association, at the Annual Meeting of the Austrian Economic Association, at the Göttingen Workshop on International Economics, at the Halle Workshop on Monetary Economics, at the Research Seminar on Macroeconomics in Freiburg, at the Research Seminar on Economics in Kassel, and at the Passau Workshop on International Economics.

Download or read book Strategic interactions between fiscal and monetary policies in a monetary union written by Reinhard Neck and published by . This book was released on 2003 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Monetary and Fiscal Strategies in the World Economy written by Michael Carlberg and published by Springer Science & Business Media. This book was released on 2010-01-05 with total page 302 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book studies the strategic interactions between monetary and fiscal policies in the world economy. The world economy consists of two regions, say Europe and America. The policy makers are the central banks and the governments. The policy targets are low inflation, low unemployment, and low structural deficits. There are demand shocks, supply shocks, and mixed shocks. There are regional shocks and common shocks. This book develops a series of basic, intermediate, and more advanced models. Here the focus is on the Nash equilibrium. The key questions are: Given a shock, can policy interactions reduce the existing loss? And to what extent can they do so? Another topical issue is policy cooperation. To illustrate all of this there are a lot of numerical examples. The present book is part of a larger research project on European Monetary Union, see the references given at the back of the book. Some parts of this project were presented at the World Congress of the International Economic Association, at the International Conference on Macroeconomic Analysis, at the International Institute of Public Finance, and at the International Atlantic Economic Conference. Other parts were presented at the Macro Study Group of the German Economic Association, at the Annual Meeting of the Austrian Economic Association, at the Göttingen Workshop on International Economics, at the Halle Workshop on Monetary Economics, at the Research Seminar on Macroeconomics in Freiburg, at the Research Seminar on Economics in Kassel, and at the Passau Workshop on International Economics.

Download or read book Policy Coordination in a Monetary Union written by Rita Bessone Basto and published by LAP Lambert Academic Publishing. This book was released on 2010-06 with total page 168 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book analyses the interaction of monetary and fiscal policies in the Economic and Monetary Union in order to determine whether any form of cooperation between policymakers is welfare enhancing and can be sustained. The strategic relationship between policymakers in the EMU is analysed within the framework of a general equilibrium model with price rigidities. In this model, fiscal policy is assumed to have positive demand spillovers and the assumption of nominal rigidities, together with that of rational expectations, creates a problem of time- inconsistency involving the formulation of optimal policy decisions. This analysis shows that the coordination of fiscal policies among countries can be counterproductive, in particular when policymakers lack the credibility to pursue optimal policies. The implications of uncertainty on the strategic interaction of macroeconomic policies are also examined. Uncertainty is modelled by introducing the possibility of stochastic productivity shocks. It is concluded that, under some circumstances, uncertainty can make central banks more effective in the implementation of monetary policy.

Download or read book Strategic Policy Choice in a Monetary Union written by Pedro Miguel Pinho Teles and published by . This book was released on 1993 with total page 246 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Policy Competition and Policy Cooperation in a Monetary Union written by Michael Carlberg and published by Springer Science & Business Media. This book was released on 2004-02-23 with total page 308 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book studies the interactions between monetary and fiscal policies in the Euro area. The policy makers are the union central bank, the German government, the French government and other governments. The policy targets are price stability in the union, full employment in Germany, full employment in France, etc. The policy instruments are union money supply, German government purchases, French government purchases, etc. As a rule, the spillovers of fiscal policy are negative. The policy makers follow either cold-turkey or gradualist strategies. The policy decisions are taken sequentially or simultaneously. Policy expectations are adaptive or rational. This book carefully discusses the case for central bank independence and fiscal cooperation.

Download or read book Monetary and Fiscal Policies in the Euro Area written by Michael Carlberg and published by Springer Science & Business Media. This book was released on 2006-03-14 with total page 298 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book studies the interactions between monetary and fiscal poUcies in the euro area. It carefully 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 American central bank, the German government, and the French government. As to policy cooperation, the focus is on the same institutions. These are higher-dimensional issues. The pohcy targets are price stability and full employment. The policy makers follow co- turkey or gradualist strategies. The policy decisions are taken sequentially or simultaneously. Monetary and fiscal policies have spillover effects. Special features of this book are numerical simulations of policy competition and numerical solutions to policy cooperation. The present book is part of a larger research project on European Monetary Union, see the references at the back of the book. Some parts of this project were presented at the World Congress of the International Economic Association. Other parts were presented at the International Conference on Macroeconomic Analysis, at the International Institute of Public Finance, at the Macro Study Group of the German Economic Association, at the Annual Meeting of the Austrian Economic Association, at the Gottingen Workshop on International Economics, at the Halle Workshop on Monetary Economics, at the Research Seminar on Macroeconomics in Freiburg, and at the Passau Workshop on International Economics.

Download or read book Strategic Policy Choice in a Monetary Union written by Pedro Teles and published by . This book was released on 1993 with total page 246 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Economic and Monetary Union The Interdependence of Monetary and Fiscal Policy in the Eurozone written by Martin Heipertz and published by . This book was released on 2022-05-02 with total page 72 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2001 in the subject Economics - Monetary theory and policy, grade: 1,0, College of Europe, language: English, abstract: This paper addresses the interdependence of monetary and fiscal policy in a monetary union and the ensuing consequences for the economic constitution of the eurozone. Monetary-fiscal interactions are approached from economic theory and game-theoretical perspectives, which provides the basis for a discussion of the political economy of the present institutional framework. It draws extensively on the existing literature covering the linkages between monetary and fiscal policy as well as game-theoretical approaches to the interaction of the two major branches of macroeconomic management. The recently proliferating work on the political economy of Economic and Monetary Union is condensed into its main arguments and critically reviewed. This includes contributions to the understanding of the politics of economic policymaking as well as normative statements about the design of institutions in a monetary union. Most of the sources are papers that focus on specific issues or start from different assumptions, which implies that their conclusions are often diverging or not even compatible. While the thesis tries to provide a balanced representation of the scientific discussion in this area, it does at times stand for a clear-cut choice on controversial normative issues. The paper consists of a theoretical and an applied part. After briefly reviewing the relevant literature in this field, the analytical section develops the necessity of fiscal coordination in a monetary union, based on the interdependence of monetary and fiscal policy as well as the strategic interaction of the institutional players involved. This insight is then applied to the present framework of macroeconomic policy in the eurozone - characterised by the fact that monetary policy is supranationally concentrated, whereas fiscal policy remains decentralised an

Download or read book Strategic Interactions between Fiscal and Monetary Authorities in a Multi Country New Keynesian Model of a Monetary Union written by Tomasz Michalak and published by . This book was released on 2013 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper we consider a number of key issues related to the policy coordination in a monetary union that has been recently discussed in the literature. To this end we propose a multi-country New-Keynesian model of a monetary union cast in the framework of linear quadratic differential games. Our framework can be used to simulate strategic interactions between an arbitrary number of fiscal authorities interacting in coalitions with or against the common central bank. For many parameter combinations our results confirm the findings of Beetsma et al. (2001) that for symmetric inflation and output gap shocks, fiscal coordination between all the countries is counter-productive within a monetary union. The clash between the central bank and the coalition of national governments is most intense under a symmetric inflation shocks when there is strong conflict concerning the orientation of stabilisation policies. This conflict is less pronounced under an asymmetric inflation and output gap shocks, however, still makes fiscal cooperation unattractive. We extend the existing New-Keynesian literature on policy coordination by considering not only cases of non-coordination, fiscal cooperation and the grand coalition, but also the partial cooperation arrangements between fiscal players. We show that, in many cases, partial fiscal coordination of a subgroup of fiscal players is more efficient, from the social point of view, than non-coordination. However, this regime still delivers poor results from the perspective of individual players. This occurs especially in the case of asymmetric shocks, as the countries directly affected by the shocks tend to quot;exportquot; losses to the countries with whom they form a coalition. Furthermore, we show that the common objective of the grand coalition is of the upmost importance for the outcome of the stabilisation process.

Download or read book Strategic Interactions Between Fiscal and Monetary Authorities in a Multi country New Keynesian Model of a Monetary Union written by Tomasz Michalak and published by . This book was released on 2009 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Dynamic Strategic Fiscal and Monetary Policies in an Economic and Monetary Union written by Minna S. Andersen and published by . This book was released on 1991 with total page 64 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Monetary and Wage Policies in the Euro Area written by Michael Carlberg and published by Springer. This book was released on 2010-10-14 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book studies interactions between monetary and wage policies in the Euro area, closely reviewing and discussing the process of policy competition and the structure of policy cooperation. On policy competition, the book focuses on competition between the European central bank, the American central bank, the German labour union, and the French labour union. As to policy cooperation, the focus is on the same institutions. Includes numerical simulations and solutions.

Download or read book Dynamic Policy Interactions in a Monetary Union written by Michael Carlberg and published by Springer Science & Business Media. This book was released on 2011-02-16 with total page 346 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book studies the dynamics of monetary and fiscal interactions in the Euro Area. The policy makers are the European Central Bank and national governments. The primary target of the ECB is low inflation. And the primary target of a national government is low unemployment. However, there is a short-run trade-off between low inflation and low unemployment. Here the main focus is on sequential policy decisions. Another focus is on simultaneous and independent policy decisions. And a third focus is on policy cooperation. There are demand shocks, supply shocks, and mixed shocks. There are country-specific shocks and common shocks. The key question is: Given a shock, what are the dynamic characteristics of the resulting process?

Download or read book Strategic Interactions in U S Monetary and Fiscal Policies written by Xiaoshan Chen and published by . This book was released on 2020 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We estimate a model in which fiscal and monetary policy behavior arise from the optimizing behavior of distinct policy authorities, with potentially different welfare functions. Optimal time-consistent policy behavior fits U.S. time series at least as well as rules-based behavior. American policies often do not conform to the conventional mix of conservative monetary policy and debt-stabilizing fiscal policy. Even after the Volcker disinflation, policies did not achieve that conventional mix, as fiscal policy did not act to stabilize debt until the mid 1990s. A credible conservative central bank that follows a time-consistent fiscal policy leader would come close to mimicking the cooperative Ramsey policy. Had that strategic policy mix been in place, American might have avoided the Great Inflation. Enhancing cooperation between policy makers without an ability to commit may be detrimental to welfare.

Download or read book Three Essays on Imbalances in a Monetary Union written by Ida Maria Hjortsø and published by . This book was released on 2012 with total page 144 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis investigates the implications of imbalances within a monetary union. In the first chapter, I study how international financial frictions lead to international imbalances and affect optimal fiscal policy in a two-country, two-good DSGE model of a monetary union. I show that the presence of international imbalances affects the optimal conduct of cooperative fiscal policies when the traded goods are complements. Government expenditures optimally play a cross-country risk sharing role which is in conflict with the domestic stabilization role: optimal fiscal policy consists in setting government expenditures such as to reduce international imbalances at the expense of higher domestic inefficiencies. In the second chapter, I assess the implications of strategic fiscal policy interactions in a two-country DSGE model of a monetary union with nominal rigidities and international financial frictions. I show that the fiscal policy makers face an incentive to set fiscal policy such as to switch the terms of trade in their favour. This incentive results in a Nash equilibrium characterized by excessive inflation differentials as well as sub-optimally high current account imbalances within the monetary union. There are thus non-negligeable welfare losses associated with strategic fiscal policy making in a monetary union. The third chapter investigates empirically the degree of risk sharing in the European Economic and Monetary Union (EMU), using two different methods. The first measure relates to the capacity of consumption smoothing. This measure indicates that risk sharing is rather low and that the introduction of the common currency did not lead to higher intra-EMU risk sharing. The second measure is based on the welfare losses associated with deviations from full risk sharing. These welfare losses have fallen since the introduction of the common currency. However, this is mostly due to changes in macroeconomic risk - not to changes in risk sharing per se.

Download or read book Monetary and fiscal policy interactions in a micro founded model of a monetary union written by Roel M. W. J. Beetsma and published by . This book was released on 2002 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: