Badarau, Cristina; Levieuge, Grégory - In: Journal of Economic Integration 28 (2013), pp. 482-506
This paper addresses the issue of macroeconomic policies in a financially heterogeneous monetary union. Optimized policy rules are used, under various budgetary policy scenarios, in a two-country DSGE model. The results indicate that a Euro-wide monetary policy strategy based on national...