Marattin, Luigi; Meraglia, Simone - 2015
' potential output and, therefore, output gap and (ii) bail-out among member states. In our framework, bail-out lowers the scope … excessively high deficits. The Monetary Union designs a mechanism such that member states with high output gap (i.e., in a … contingent on the cycle - i.e., on the member state's output gap - and, all else equal, can be implemented provided the member …