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The single monetary policy and domestic macro-fundamentals: Evidence from Spain

Michael Arghyrou () and María Gadea ()

Documentos de Trabajo from Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza

Abstract: We model pre-euro Spanish monetary policy and use our findings to assess the compatibility of the interest rates set by the ECB since 1999 with Spanish macro-fundamentals. We find that in the 1990s Spain implemented successfully a monetary strategy tailored to its own domestic fundamentals; and by abolishing it to join the euro she has paid a cost in the form of a sub-optimal monetary policy. Spain’s experience suggests a cautious approach with regards to the timing of further EMU enlargement.

Keywords: Spain; ECB; monetary policy; domestic fundamentals; compatibility (search for similar items in EconPapers)
JEL-codes: C51 C52 E43 E58 F37 (search for similar items in EconPapers)
Date: 2008-05
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Related works:
Journal Article: The single monetary policy and domestic macro-fundamentals: Evidence from Spain (2012) Downloads
Working Paper: The single monetary policy and domestic macro-fundamentals: Evidence from Spain (2008) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:zar:wpaper:dt2008-05

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