Clausen, Volker; Wohltmann, Hans-Werner - 2002 - Second Revision
This paper investigates the dynamic effects of monetary and fiscal policy in a monetary union, which is characterized … unanticipated or anticipated. We also study the coordination between monetary and fiscal policy in a monetary union. Monetary policy … may completely stabilize European output after unanticipated fiscal policy shocks. With anticipated fiscal policy shocks …