 AS-AD Disequilibrium Dynamics and the Taylor Interest Rate Policy Rule: Euro Area-Based Estimation and SimulationPeter Flaschel and Christian Proaño Chapter 10 in Aspects of Modern Monetary and Macroeconomic Policies, 2007, pp 172-196 from Palgrave Macmillan Abstract: Abstract The future and the success of the European Monetary Union are still unclear in many respects. While some researchers think that monetary unification, with the subsequent higher economic integration and labour mobility between the EMU member countries, will lead to a synchronization of the business cycles of the participating economies, and therefore to a more harmonic macroeconomic environment within the EMU, other observers see great dangers for its stability and even its further existence, due to the present scenario of (competing) heterogeneous fiscal policies and the (non-cooperative) inflation developments in certain economies. In any case, even if such destabilizing factors decrease in the years ahead, the stability of the EMU depends to a large extent on the proper conduct of monetary policy by the ECB and the resulting changes in economic activity and in nominal wage and price adjustment in the EMU in particular. Keywords: Interest Rate; Monetary Policy; Central Bank; Euro Area; Real Wage (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-62734-5_10 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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