Out in the Sunshine? Outsiders, Insiders, and the United States in 1998

Fabio Ghironi () and Francesco Giavazzi ()

No 1547, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: The paper analyses monetary and fiscal policy interactions in a three-country world, interpreted to represent two EU economies and the rest of the world. The analysis extends well-known results in the literature on international policy spillovers by investigating the effects of different sizes of the two EU economies. A set of general results is derived, which allows a reinterpretation of earlier findings in the literature on policy-making in interdependent economies.

Keywords: European Monetary Union; International Policy Coordination (search for similar items in EconPapers)
JEL-codes: F31 F33 F41 F42 (search for similar items in EconPapers)
Date: 1997-01

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