Monetary and Fiscal Policies in the Euro Area

1. Front Matter

   Pages I-XVI

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2. Introduction

   1. Introduction

      Pages 1-10

3. Basic Models of a Monetary Union

   1. Front Matter

      Pages 11-11

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   2. The Small Monetary Union of Two Countries

      Pages 13-19

   3. The World as a Whole

      Pages 20-23

   4. The World of Two Monetary Regions

      Pages 24-32

   5. The Large Monetary Union of Two Countries

      Pages 33-41

4. Monetary Interactions between Europe and America

   1. Front Matter

      Pages 43-43

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   2. Monetary Competition between Europe and America

      Pages 45-70

   3. Monetary Cooperation between Europe and America

      Pages 71-82

5. Fiscal Interactions between Germany and France

   1. Front Matter

      Pages 83-83

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   2. Fiscal Competition between Germany and France

      Pages 85-98

   3. Fiscal Cooperation between Germany and France

      Pages 99-104

6. Monetary and Fiscal Interactions Intermediate Models

   1. Front Matter

      Pages 105-105

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   2. Competition between European Central Bank, German Government, and French Government

      Pages 107-119

   3. Cooperation between European Central Bank, German Goverment, and French Government

      Pages 120-126

   4. Competition between European Central Bank, American Central Bank, German Government, and French Government

      Pages 127-136

   5. Cooperation between European Central Bank, American Central Bank, German Government, and French Government

      Pages 137-146

7. Monetary and Fiscal Interactions Advanced Models

   1. Front Matter

      Pages 147-147

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   2. Cold-Turkey Policies: Simultaneous Decisions

      Pages 149-154

This book studies the interactions between monetary and fiscal poUcies in the euro area. It carefully discusses the process of policy competition and the structure of policy cooperation. As to policy competition, the focus is on competition between the European central bank, the American central bank, the German government, and the French government. As to policy cooperation, the focus is on the same institutions. These are higher-dimensional issues. The pohcy targets are price stability and full employment. The policy makers follow co- turkey or gradualist strategies. The policy decisions are taken sequentially or simultaneously. Monetary and fiscal policies have spillover effects. Special features of this book are numerical simulations of policy competition and numerical solutions to policy cooperation. The present book is part of a larger research project on European Monetary Union, see the references at the back of the book. Some parts of this project were presented at the World Congress of the International Economic Association. Other parts were presented at the International Conference on Macroeconomic Analysis, at the International Institute of Public Finance, at the Macro Study Group of the German Economic Association, at the Annual Meeting of the Austrian Economic Association, at the Gottingen Workshop on International Economics, at the Halle Workshop on Monetary Economics, at the Research Seminar on Macroeconomics in Freiburg, and at the Passau Workshop on International Economics.

• Euro
• European Monetary Union
• Fiscal Policy
• International Policy Coordination
• Monetary Policy
• Wage Policy

• Department of Economics, Helmut Schmidt University, Federal University of Hamburg, Hamburg, Germany

  Michael Carlberg

Policies and ethics