Indebtedness and macroeconomic imbalances in a monetary-union DSGE model
Cristina Badarau,
Florence Huart and
Ibrahima Sangaré (ibrahima.sangare@u-bordeaux.fr)
Additional contact information
Ibrahima Sangaré: Larefi - Laboratoire d'analyse et de recherche en économie et finance internationales - UB - Université de Bordeaux
Working Papers from HAL
Abstract:
We build a two-country open-economy monetary union DSGE model in order to explain some macroeconomic imbalances in the euro area. We fo cus on the role of cyclic al behaviour of public spending and sovereign risk premium. Pro-cyclical primary public expenditures in one country do not lead to higher interest rates on domestic public bonds in the short term as long as output growth helps financing public debt. Spillover effects on th e other country can be positive on output as long as a real effective depreciation of the common currency leads to higher exports to the rest of the world.
Keywords: macroeconomic divergences; euro area; DSGE; risk premium; pro-cyclical fiscal policy; spillover effects (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-dge, nep-mac and nep-opm
Note: View the original document on HAL open archive server: https://hal.univ-lille.fr/hal-00996622
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)
Downloads: (external link)
https://hal.univ-lille.fr/hal-00996622/document (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-00996622
Access Statistics for this paper
More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD (hal@ccsd.cnrs.fr).