Economic Policy in a Monetary Union

The book explores the scope and limits of macroeconomic policy in a monetary union. The focus is on pure policies, policy mixes, and policy coordination. The leading protagonists are the union central bank, national governments, and national trade unions. Special emphasis is put on wage shocks and wage restraint. The book develops a series of basic, intermediate, and advanced models. The monetary union is an open economy with high capital mobility. The exchange rate between the monetary union and the rest of the world is floating. The world interest rate can be exogenous or endogenous. The union countries may differ in money demand, consumption, imports, openness, or size. A striking feature is the numerical estimation of policy multipliers. A lot of diagrams serve to illustrate the subject in hand.

Series of basic, intermediate, and advanced models

Numerical estimation of policy multipliers

Numerous diagrams for illustration

Contenu
Basic Models: The Small Country in the Large Union.- The Small Union as a Whole.- The Small Union of Two Countries.- The Small Country in the Large Union: Wage Shocks.- Flexible Wages.- The Small Union: The Small Union as a Whole.- The Small Union of Two Countries.- The Small Union of Three Countries.- The Small Union of n Countries.- The Large Union: The World as a Whole.- The World of Two Regions.- The World of Three Regions.- The World of Four Regions.- The World of n Regions.- The Small Country in the Large Union.- The Large Union of Two Countries.- Synopsis.- Conclusion.- Result.- References.