Désajustements de change, fédéralisme budgétaire et redistribution. Comment s'ajuster en union monétaire
AbstractThe euro zone crisis illustrates the insufficiency of adjustment mechanisms in a monetaryunion characterized by a large heterogeneity. Firstly, the paper gives an evaluationof exchange rate misalignments inside the euro zone, using a FEER approach(Jeong et ali., 2010). Usingpanel econometric techniques over the period 1994-2010, we confirm that the exchange ratemisalignments in the euro zone have diverged, reflecting unsustainable evolutions. Secondly, we use a ?stock-flow consistent? modelof a monetary union with two countries along the lines of Godley and Lavoie (2007) and Duwicquet and Mazier (2010). A federal budget is introduced with federal expenditures andsocial transfers financed by federal taxes and euro-bonds issuing. The stabilizing role of such a federal budget is confirmed facing asymmetric shock or thenegative impact of exchange rate misalignments inside the monetary union. Similarly, the stabilizingrole of euro-bonds used to finance European investment projects is illustrated. JEL Classification: F31, F32, F41, F37, E12.
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Bibliographic InfoArticle provided by Presses de Sciences-Po in its journal Revue de l'OFCE.
Volume (Year): N° 127 (2013)
Issue (Month): 1 ()
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Web page: http://www.cairn.info/revue-de-l-ofce.htm
exchange rate misalignments; adjustments; monetary union; euro zone crisis;
Other versions of this item:
- Duwicquet, Vincent & Mazier, Jacques & Saadaoui, Jamel, 2012.
"Désajustements de change, fédéralisme budgétaire et redistribution : comment s’ajuster en union monétaire
[Exchange Rate Misalignments, Fiscal Federalism and Redistribution: How to Adjust in," MPRA Paper 42858, University Library of Munich, Germany.
- F31 - International Economics - - International Finance - - - Foreign Exchange
- F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
- F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
- F37 - International Economics - - International Finance - - - International Finance Forecasting and Simulation: Models and Applications
- E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian
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