Asymétries de transmission, incertitude additive et stabilisation monétaire en UE M: les enseignements d'un modèle théorique

Paul De Grauwe and Marc-Alexandre Senegas

Economie & Prévision, 2006, vol. n° 173, issue 2, 27-41

Abstract: This paper examines, from a theoretical standpoint, how uncertainty affects the choice between a federal monetary policy based on national data and a policy based on union-wide aggregated data in a monetary union with asymmetrical monetary-policy transmission. We find that when additive uncertainty is introduced, the difference in the forecasting processes matters. In particular, if union-wide forecasting is more accurate than national forecasting, this can compensate the welfare loss arising from the use of union-wide aggregation. We conclude, however, that there is a strong case for using national information in the optimal design of the common monetary policy.

Keywords: monetary policy; Economic and Monetary Union; asymmetry (search for similar items in EconPapers)
Date: 2006
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Related works:
Journal Article: Asymétries de transmission, incertitude additive et stabilisation monétaire en UEM: les enseignements dun modèle théorique (2006)
Working Paper: Asymétries de transmission, incertitude additive et stabilisation monétaire en UEM: les enseignements d'un modèle théorique (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:cai:ecoldc:ecop_173_0027

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