EconPapers    
Economics at your fingertips  
 

Macroeconomic Stabilization, Monetary-Fiscal Interactions, and Europe's Monetary Union

Giancarlo Corsetti (), Luca Dedola, Marek Jarociński, Bartosz Maćkowiak () and Sebastian Schmidt ()

No 12371, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: The euro area recently experienced a prolonged period of weak economic activity and very low inflation. This paper reviews models of business cycle stabilization with an eye to formulating lessons for policy in the euro area. According to standard models, after a large recessionary shock accommodative monetary and fiscal policy together may be necessary to stabilize economic activity and inflation. The paper describes practical ways for the euro area to be able to implement an effective monetary-fiscal policy mix.

Keywords: eurobond; Government bonds; Joint Analysis of Fiscal and Monetary Policy; Lower Bound on Nominal Interest Rates; Self-Fulfilling Sovereign Default (search for similar items in EconPapers)
JEL-codes: E31 E62 E63 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-eec, nep-mac, nep-mon and nep-opm
Date: 2017-10
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=12371 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Working Paper: Macroeconomic Stabilization, Monetary-fiscal Interactions, and Europe’s monetary Union (2016) Downloads
Working Paper: Macroeconomic stabilization, monetary-fiscal interactions, and Europe’s monetary union (2016) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:12371

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... rs/dp.php?dpno=12371

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ..
Bibliographic data for series maintained by (). This e-mail address is bad, please contact .

 
Page updated 2018-12-11
Handle: RePEc:cpr:ceprdp:12371