A General Framework For The Macroeconomic Analysis Of Monetary Unions
AbstractThe objective of this paper is to develop a general framework for the macroeconomic modelling of monetary unions, which could be useful for policy analysis, as well as for teaching purposes. Our starting point will be the standard twocountry Mundell-Fleming model with perfect capital mobility, extended to incorporate the supply side, and modified so that the money market is common for two countries forming a monetary union. The model is presented in two versions: for a small and a big monetary union, respectively. After solving each model, we will derive multipliers for monetary, real (i. e., demand-side), supply, and external shocks, paying a special attention to the distinction between symmetric and asymmetric shocks. A graphical analysis is also provided.
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Bibliographic InfoPaper provided by Asociación Española de Economía y Finanzas Internacionales in its series Working Papers with number 01-06.
Length: 45 pages
Date of creation: Jun 2001
Date of revision:
Other versions of this item:
- Óscar Bajo Rubio & Carmen Díaz Roldán, 2001. "A General Framework For The Macroeconomic Analysis Of Monetary Unions," Documentos de Trabajo - Lan Gaiak Departamento de EconomÃa - Universidad PÃºblica de Navarra 0101, Departamento de Economía - Universidad Pública de Navarra.
- Oscar Bajo Rubio & Carmen Díaz-Roldán, . "A General Framework for the Macroeconomic Analysis of Monetary Unions," Working Papers on International Economics and Finance 01-06, FEDEA.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- Oscar Bajo-Rubio & Carmen Díaz-Roldán & Antonio G. Gómez-Plana, . "Price-Cost Margins and Economic Integration: How Important is the Pro-Competitive Effect?," Working Papers on International Economics and Finance 04-02, FEDEA.
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