 Budgetary spillovers and short-term interest ratesBas Aarle
Chapter 2 in Economic Spillovers, Structural Reforms and Policy Coordination in the Euro Area, 2008, pp 27-53 from Springer Abstract: Abstract In Chapter 1, it was discussed in detail that there are various spillovers in a highly integrated economic space like the Euro Area. It was explained in which ways these spillovers manifest themselves in the Euro Area e.g. through trade flows, pass-through of inflation, adjustments caused by changes of the common short-term interest rate and the exchange rate of the euro. It was also noted that there exist several spillover effects from monetary and fiscal policies in a highly integrated monetary union like the Euro Area. Monetary and fiscal policies in the Euro Area are intrinsically linked through these spillovers. In the short run, spillovers arise from the effects that monetary policy may have on the macroeconomic conditions under which fiscal policies are undertaken, and vice versa. In the long run, these spillovers/interdependencies arise in particular from the accumulation of government debt. Keywords: Interest Rate; Monetary Policy; Fiscal Policy; Euro Area; Monetary Policy Shock (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:spr:conchp:978-3-7908-1970-0_2 Ordering information: This item can be ordered from DOI: 10.1007/978-3-7908-1970-0_2 Access Statistics for this chapter More chapters in Contributions to Economics from Springer |
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