Désajustements de change, fédéralisme budgétaire et redistribution: comment s'ajuster en union monétaire

Vincent Duwicquet (), Jacques Mazier () and Jamel Saadaoui ()
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Jacques Mazier: CEPN - Centre d'Economie de l'Université Paris Nord - UP13 - Université Paris 13 - USPC - Université Sorbonne Paris Cité - CNRS - Centre National de la Recherche Scientifique
Jamel Saadaoui: CEPN - Centre d'Economie de l'Université Paris Nord - UP13 - Université Paris 13 - USPC - Université Sorbonne Paris Cité - CNRS - Centre National de la Recherche Scientifique

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Abstract: The euro zone crisis illustrates the insufficiency of adjustment mechanisms in a monetary union characterized by a large heterogeneity. Firstly, the paper gives an evaluation of exchange rate misalignments inside the euro zone, using a FEER approach (Jeong, Mazier and Saadaoui, 2010). Using panel econometric techniques over the period 1994-2010, we confirm that the exchange rate misalignments in the euro zone have diverged, reflecting unsustainable evolutions. Secondly, we use a "stock-flow consistent" model of a monetary union with two countries along the lines of Godley and Lavoie (2007) and Duwicquet and Mazier (2010). A federal budget is introduced with federal expenditures and social transfers financed by federal taxes and euro-bonds issuing. The stabilizing role of such a federal budget is confirmed facing asymmetric shock or the negative impact of exchange rate misalignments inside the monetary union. Similarly, the stabilizing role of euro-bonds used to finance European investment projects is illustrated.

Keywords: Désajustements de taux de change; ajustements; union monétaire; crise de la zone euro; Exchange Rate Misalignments; Adjustments; Monetary Union; Euro Zone Crisis (search for similar items in EconPapers)
Date: 2012-09-25
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00735142v4
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Related works:
Journal Article: Désajustements de change, fédéralisme budgétaire et redistribution. Comment s'ajuster en union monétaire (2013)
Working Paper: Désajustements de change, fédéralisme budgétaire et redistribution: comment s’ajuster en union monétaire? (2013)
Working Paper: Désajustements de change, fédéralisme budgétaire et redistribution: comment s’ajuster en union monétaire (2012)
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