Monetary and Fiscal Unification in the EU: A Stylized Analysis

Bas van Aarle, Florence Huart and Bas Van Aarle
Authors registered in the RePEc Author Service: Bas van Aarle

No 149, CESifo Working Paper Series from CESifo

Abstract: The Economic and Monetary Union (EMU) implies a considerable change in monetary and fiscal policy design in the European Union. With the aid of a two-country version of the Alesina and Tabellini (1987) model, this paper provides a stylized analysis of monetary and fiscal policy interaction in the EMU. It is shown how macroeconomic outcomes are affected by common monetary and fiscal policies and how outcomes depend on the commitment ability of the ECB when implementing its monetary policy. Moreover, it is analyzed how asymmetries between countries affect outcomes when entering EMU.

Keywords: EMU; ECB; Monetary Policy; Fiscal Policy. (search for similar items in EconPapers)
Date: 1997
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Monetary and fiscal unification in the EU: a stylized analysis (1999)
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