• Contents
  • 1 Introduction
  • 2 Microfoundations
  • 2.1 Households
  • 2.2 Firms
  • 3 Equilibrium Dynamics
  • 3.1 Aggregation
  • 3.2 Steady State
  • 3.3 Goods Market Clearing
  • 3.4 Phillips Curve
  • 3.5 IS relation
  • 3.6 Terms of Trade
  • 3.7 Union-Wide Mean Ratio of LAMP
  • 4 Determinacy
  • 4.1 Union-Wide Determinacy
  • 4.2 Country Determinacy
  • 4.3 Heterogenous Openness
  • 5 Optimal Policy
  • 6 Conclusion
  • 7 Appendix
  • 7.1 Notation
  • 7.2 Steady State Relations
  • 7.3 Goods Market Clearing
  • 7.4 Union-Wide Mean Ratio
  • 7.5 Loss Function
  • 7.6 Union-Wide Determinacy
  • 7.7 Country Determinacy
  • 7.8 Heterogenous Openness
  • Bibliography