EMU stability: Direct and indirect risk sharing
Paolo Canofari (),
Giovanni Di Bartolomeo () and
wp.comunite from Department of Communication, University of Teramo
Our paper aims to analyze the effectiveness of different risk-sharing mechanisms in providing stability to a monetary union. We select two stylized tools with extreme and opposite features. The first is an expansionary but conventional monetary policy that is used to help EMU’s most fragile member states manage their public debts; the second is a centralized fiscal policy that allows for the transfer of a portion of these public debts from EMU’s most fragile member states to those considered EMU’s “core”. By a stylized periphery-core model of a monetary union, we compare the strengths and weaknesses of these two tools in order to reach some welfare implications in terms of union stability.
New Economics Papers: this item is included in nep-eec and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
Journal Article: EMU Stability: Direct and Indirect Risk Sharing (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ter:wpaper:00133
Access Statistics for this paper
More papers in wp.comunite from Department of Communication, University of Teramo
Bibliographic data for series maintained by Giovanni Di Bartolomeo ().