Fiscal Policy in the Transition to Monetary Union: a Structural VAR Model.

In order to assess the effect of fiscal rules in Stage Three of EMU for France and Germany, Bayoumi and Eichengreen's (1992) structural V.A.R. analysis is extended by including the general government financial surplus and conditioning by external variables. This allows a distinction between fiscal and monetary shocks. During the period 1972.1-1995.4, monetary policy has a significant effent on prices in both countries.

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Year of publication:	1999
Authors:	Bruneau, C. ; De Bandt, O.
Institutions:	Banque de France
Subject:	DEFICIT \| FISCAL POLICY \| ECONOMETRIC MODELS

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Series:	Banque de France - Direction Generale des Etudes.
Type of publication:	Book / Working Paper
Notes:	35 pages
Classification:	C50 - Econometric Modeling. General ; E42 - Monetary Systems; Standards; Regimes; Government and the Monetary System ; H2 - Taxation, Subsidies, and Revenue
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005646650