On the Desirability of Supply-Side Intervention in a Monetary Union

Carmen Díaz Roldán Mª ()
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Carmen Díaz Roldán Mª: Universidad Castilla La Mancha, http://www.uclm.es/
Authors registered in the RePEc Author Service: Carmen Diaz-Roldan

No E2002/21, Economic Working Papers at Centro de Estudios Andaluces from Centro de Estudios Andaluces

Abstract: This paper examines the desirability of supply-side intervention within a monetary union, given the constraints on monetary and fiscal policy, and compares it with an economic framework characterized by the independence of monetary policy. To this end, we first develop a simple two-country model in order to analyse in strategic terms how the authorities can deal with monetary, real and supply shocks, and the extent to which supply-side intervention may be useful to deal with these shocks. Next, we study whether the formation of a monetary union could be beneficial when there is coordination over labour market intervention.

Keywords: Monetary union; supply-side policies; policy coordination. (search for similar items in EconPapers)
JEL-codes: E61 E62 F42 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2002
New Economics Papers: this item is included in nep-ifn and nep-mac
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Persistent link: https://EconPapers.repec.org/RePEc:cea:doctra:e2002_21

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