A GENERAL FRAMEWORK FOR THE MACROECONOMIC ANALYSIS OF MONETARY UNIONS

Oscar Bajo-Rubio () and Carmen Diaz-Roldan

No 101, Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra from Departamento de Economía - Universidad Pública de Navarra

Abstract: The objective of this paper is to develop a general framework for the macroeconomic modelling of monetary unions, which could be useful for policy analysis, as well as for teaching purposes. Our starting point will be the standard twocountry Mundell-Fleming model with perfect capital mobility, extended to incorporate the supply side, and modified so that the money market is common for two countries forming a monetary union. The model is presented in two versions: for a small and a big monetary union, respectively. After solving each model, we will derive multipliers for monetary, real (i. e., demand-side), supply, and external shocks, paying a special attention to the distinction between symmetric and asymmetric shocks. A graphical analysis is also provided.

Pages: 44 pages
Date: 2001
New Economics Papers: this item is included in nep-ifn and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published in

Downloads: (external link)
http://www2.unavarra.es/gesadj/depEconomia/repec/DocumentosTrab/DT0101.PDF (application/pdf)

Related works:
Working Paper: A GENERAL FRAMEWORK FOR THE MACROECONOMIC ANALYSIS OF MONETARY UNIONS (2001)
Working Paper: A General Framework for the Macroeconomic Analysis of Monetary Unions
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:nav:ecupna:0101

Ordering information: This working paper can be ordered from
Papers are not sent in a centralized mode. You can download them with ftp, or contact the authors.

Access Statistics for this paper

More papers in Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra from Departamento de Economía - Universidad Pública de Navarra Campus de Arrosadía - 31006 Pamplona (Spain).
Bibliographic data for series maintained by Javier Puértolas ().