In this paper, we provide a test of the sustainability of the Spanish government deficit over the period 1850–2000, emphasizing the role played by monetary and fiscal dominance in order to get fiscal solvency. Since the condition of fiscal solvency was satisfied, government deficit would have...

Price determination theory typically focuses on the role of monetary policy, while the role of fiscal policy is usually neglected. From a different point of view, the Fiscal Theory of the Price Level takes into account monetary and fiscal policy interactions and assumes that fiscal policy may...

In this article, we provide a test of the sustainability of external imbalances in the OECD countries over the period 1970 to 2007, i.e., before the beginning of the international financial crisis. Specifically, we deal with the case of those countries that have experienced current account...

This article analyses the relationship between international trade and economic growth from the point of view of one of the most traditional hypotheses within this field, namely, the export-led growth hypothesis. To this end, we apply Granger-causality tests, in a cointegration framework, to...

In this paper, an alternative methodology for the assessment of the European Union's (EU's) regional policies is proposed, making use of the HERMIN macro-econometric model. A major feature of this approach is that it allows the comparison of the actual evolution of the economy under analysis,...

In this paper we analyze the nature of the shocks hitting the Central and Eastern European countries (CEECs) over the recent years. To this end, we first evaluate the relative importance of symmetric versus asymmetric shocks, and then extract their temporary component. Our final aim would be...

Introduction -- The Model: Description of the Model; A Macroeconomic Model for a Monetary Union; Characterization of the Shocks.-The Model for a Small Monetary Union: Shock Multipliers; Graphical Analysis -- The Model for a Large Monetary Union: Shock Multipliers; Graphical Analysis --...

In this article we re-examine the long-run sustainability of US budget deficits, using Bai and Perron's multiple structural change approach. While the deficit would have been weakly sustainable over the full sample (1947:1-2005:3), strong sustainability would appear only between January 1982 and...