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The literature on currency crisis has generally not answered to the following question: which economic policies may reduce the contagion effects of a speculative shock? We use a dynamic Mundell-Fleming model extended to four countries and compute three time-consistent equilibria: a Nash...
Persistent link: https://www.econbiz.de/10005792596
Persistent link: https://www.econbiz.de/10005246980
This paper deals with Euro introduction and ask whether it is likely to increase the exchange rates volatility on a world-wide scale. Following this purpose, we present a three country-model (US, Germany and France) and compare the exchange rate volatility according to the nature of the shock...
Persistent link: https://www.econbiz.de/10005440483
We reconsider the link between domestic public debts and average and domestic inflation rates in a monetary union, using a modified version of a model by Beetsma and Vermeylen (2002). It is thus possible to show that the causation between the inflation dynamics and the public finances might go...
Persistent link: https://www.econbiz.de/10005689680
Des économistes ont cru déceler dans l'économie danoise le paradigme des " contractions budgétaires expansionnistes ". L'intérêt pour le Danemark était alors dû à la simultanéité de trois phénomènes entre les années 1982 et 1986 : une reprise économique forte, une rigueur...
Persistent link: https://www.econbiz.de/10005689683
Though the promoters of the fiscal theory of the price level consider it as a counterrevolution to the Quantity theory, by demonstrating that price determination is also fiscally driven, we show that the standard framework they use is relevant only when public debt is monetised in the long run....
Persistent link: https://www.econbiz.de/10005792592
This article presents a survey of the Fiscal Theory of the Price Level. According to it, there are two stable regimes of economic policies: one, traditional, where the monetary authorities control inflation and where the fiscal authorities must be concerned with their intertemporal balance. The...
Persistent link: https://www.econbiz.de/10005792610
We use a two-country dynamic model in a monetary union in which we introduce a wealth private behaviour. We study the implications of public debt on monetary and fiscal policies in the short and the long run. We analyse the effects of asymmetric fiscal policies in Euroland: the first country has...
Persistent link: https://www.econbiz.de/10005792625
According to the fiscal theory of the price level (FTPL), the interactions between monetary and fiscal policies with governments facing the possibility to act in a non-Ricardian manner make the general price level be fully determined. Here, depending on the expectations framework, we show to...
Persistent link: https://www.econbiz.de/10005198924
The purpose of this note is to compare the characteristics of the actual Stability and Growth Pact with that of a European "modified golden rule". The latter would consist in achieving in each EU country a cyclically-adjusted net-of-public-investment balance. The benchmark for comparison is the...
Persistent link: https://www.econbiz.de/10005198932