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Counter-Cyclical Fiscal Rules and the Zero Lower Bound

Hauptmeier, Sebastian; Kamps, Christophe; Radke, Lucas - 2022

economic activity, inflation and government debt in face of an occasionally binding lower bound on the nominal interest rate in … policy, the optimal fiscal policy rule features a strong counter-cyclical response to the deviation of inflation from the … inflation significantly improves welfare and reduces the lower-bound frequency. In addition, the optimal simple monetary and …

Persistent link: https://www.econbiz.de/10014078327

Determinants of Inflation and Price Level Differentials Across the Euro Area Countries

Andersson, Malin; Masuch, Klaus; Schiffbauer, Marc - 2021

This paper analyses the determinants of inflation differentials and price levels across the euro area countries …. Dynamic panel estimations for the period 1999-2006 show that inflation differentials are primarily determined by cyclical … positions and inflation persistence. The persistence in inflation differentials appears to be partly explained by administered …

Persistent link: https://www.econbiz.de/10013316285

The Current Account and Monetary Policy in the Euro Area

Schuler, Tobias; Sun, Yiqiao - 2022

We investigate the factors driving current account and monetary policy developments in the euro area. We estimate an open-economy structural vector autoregression (VAR) model with zero and sign restrictions derived from a multi-country dynamic stochastic general equilibrium (DSGE) model to...

Persistent link: https://www.econbiz.de/10014079214

Structural Asymmetries and Financial Imbalances in the Eurozone

Jaccard, Ivan - 2017

major source of cross-country heterogeneity in the eurozone. We develop a two-country model with incomplete international …

Persistent link: https://www.econbiz.de/10012953871

Reverse Causality in Global Current Accounts

Schnabl, Gunther - 2010

The paper discusses global imbalances under the aspect of an asymmetric world monetary system. It identifies the US and Germany as center countries with rising/high current account deficits (US) and surpluses (Germany). These are matched by current account surpluses of countries stabilizing...

Persistent link: https://www.econbiz.de/10013142986

Macroprudential Policy Instruments and Economic Imbalances in the Euro Area

Brzoza-Brzezina, Michal - 2013

Since its creation the euro area suffered from imbalances between its core and peripheral members. This paper checks whether macroprudential policy tools - applied in a countercyclical fashion as known from the DSGE literature to the peripheral countries - could contribute to providing more...

Persistent link: https://www.econbiz.de/10013076277

Euro Area External Imbalances and the Burden of Adjustment

Di Mauro, Filippo - 2014

The objective of this paper is to explore the consequences of the correction of Euro area trade imbalances on real exchange rates. This analysis requires one additional dimension with respect to the standard Global Imbalances framework à la Obstfeld and Rogoff (2005), since the adjustment takes...

Persistent link: https://www.econbiz.de/10013053828

A Minimal Moral Hazard Central Stabilisation Capacity for the EMU Based on World Trade

Beetsma, Roel - 2018

Recent debate has focused on the introduction of a central stabilisation capacity as a completing element of the Economic and Monetary Union. Its main objective would be to contribute cushioning country-specific economic shocks, especially when national fiscal stabilisers are run down. There are...

Persistent link: https://www.econbiz.de/10012923313

Fiscal consolidation in the euro area: long-run benefits and short-run costs.

Coenen, Günter; Mohr, Matthias; Straub, Roland - 2008

In this paper, we examine the macroeconomic effects of alternative fiscal consolidation policies in the New Area-Wide Model (NAWM), a two-country open-economy model of the euro area developed at the European Central Bank (cf. Coenen et al., 2007). We model fiscal consolidation as a permanent...

Persistent link: https://www.econbiz.de/10011604948

Is Fiscal Consolidation Self-Defeating? A Panel-VAR Analysis for the Euro Area Countries

Attinasi, Maria Grazia - 2016

This paper studies the effects of fiscal consolidation on the debt-to-GDP ratio of 11 Euro area countries. Using a quarterly fiscal Panel VAR allows us to trace out the dynamics of the debt-to-GDP ratio following a fiscal shock and to disentangle the main channels through which fiscal...

Persistent link: https://www.econbiz.de/10012999413