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An MU Model with Active Monetary Policy

Joseph Plasmans, Jacob Engwerda, Bas van Aarle, Giovanni Di Bartolomeo () and Tomasz Michalak
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Joseph Plasmans: University of Antwerp, Belgium and Tilburg University
Tomasz Michalak: University of Antwerp

A chapter in Dynamic Modeling of Monetary and Fiscal Cooperation Among Nations, 2006, pp 111-143 from Springer

Abstract: This chapter analyzes the effects of active monetary stabilization policy in an MU. It extends the analysis of the previous chapter, where monetary policy was held passive and the focus was entirely concentrated on (the coordination of) fiscal policies. In this chapter we will study the effects of active monetary policy andalternative regimes ofmacroeconomic policycooperation with their impact in a dynamic model of macro economic adjustment in an MU.

Keywords: Interest Rate; Monetary Policy; Central Bank; Real Interest Rate; Equilibrium Strategy (search for similar items in EconPapers)
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:spr:dymchp:978-0-387-27931-2_4

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DOI: 10.1007/0-387-27931-8_4

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