Monetary and Fiscal Policy Design under EMU: A Dynamic Game Approach
AbstractThis paper analyzes the problem of designing macroeconomic stabilization policies within the European Monetary Union (EMU) as a dynamic game between a centralized monetary authority, the European Central Bank (ECB), and national fiscal policy makers. Non-cooperative feedback Nash equilibrium and cooperative Nash bargaining solutions are determined under various assumptions about r ationing regimes in goods and labor markets and structural characteristics of the economies involved.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Tilburg University in its series Open Access publications from Tilburg University with number urn:nbn:nl:ui:12-81534.
Date of creation: 1999
Date of revision:
Contact details of provider:
Web page: http://www.tilburguniversity.edu/
Other versions of this item:
- Aarle, B. van & Engwerda, J.C. & Plasmans, J.E.J. & Weeren, A.J.T.M., 1999. "Monetary and Fiscal Policy Design under EMU: A Dynamic Game Approach," Open Access publications from Tilburg University, Tilburg University urn:nbn:nl:ui:12-81174, Tilburg University.
- Bas van Aarle & Jacob Engwerda & Joseph Plasmans & Arie Weeren, 2000. "Monetary and Fiscal Policy Design under EMU: A Dynamic Game Approach," CESifo Working Paper Series 262, CESifo Group Munich.
- VAN AARLE, Bas & ENGWERDA, Jacob C. & PLASMANS, Joseph E.J. & WEEREN, Arie, 1999. "Monetary and fiscal pollcy design under EMU: a dynamic game approach," Working Papers 1999041, University of Antwerp, Faculty of Applied Economics.
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.:
- Currie, David & Levine, Paul L & Pearlman, Joseph, 1990.
"European Monetary Union or Hard EMS?,"
CEPR Discussion Papers, C.E.P.R. Discussion Papers
472, C.E.P.R. Discussion Papers.
- Engwerda, J.C. & Aarle, B. van & Plasmans, J.E.J., 1998. "Fiscal Policy Interaction in the EMU," Discussion Paper, Tilburg University, Center for Economic Research 1998-113, Tilburg University, Center for Economic Research.
- Reinhard Neck & Engelbert Dockner, 1995. "Commitment and coordination in a dynamic game model of international economic policy-making," Open Economies Review, Springer, Springer, vol. 6(1), pages 5-28, January.
- Jensen, Svend Erik Hougaard & Jensen, Lars Grue, 1995. "Debt, deficits and transition to EMU: A small country analysis," European Journal of Political Economy, Elsevier, Elsevier, vol. 11(1), pages 3-25, March.
- M. Buti & D. Franco & H. Ongena, 1997.
"Budgetary Policies during Recessions - Retrospective Application of the "Stability and Growth Pact" to the Post-War Period,"
European Economy - Economic Papers, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission
121, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.
- Marco BUTI & Daniele FRANCO & Hedwig ONGENA, 1997. "Budgeetary Policies during Recessions : Retrospective Application of the Stability and Growth Pact” to the Post-War Period," Discussion Papers (REL - Recherches Economiques de Louvain) 1997041, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- German, Israel, 1985. "Disequilibrium Dynamics and the Stability of Quasi Equilibria," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 100(3), pages 571-96, August.
- Engwerda, J.C. & Aarle, B. van & Plasmans, J.E.J., 1997. "The (in)finite horizon open-loop Nash LQ Game: An application to EMU," Discussion Paper, Tilburg University, Center for Economic Research 1997-84, Tilburg University, Center for Economic Research.
- Turnovsky, Stephen J & Basar, Tamer & d'Orey, Vasco, 1988.
"Dynamic Strategic Monetary Policies and Coordination in Interdependent Economies,"
American Economic Review, American Economic Association,
American Economic Association, vol. 78(3), pages 341-61, June.
- Stephen J. Turnovsky & Tamer Basar & Vasco d'Orey, 1987. "Dynamic Strategic Monetary Policies and Coordination in Interdependent Economies," NBER Working Papers 2467, National Bureau of Economic Research, Inc.
- Barrell, Ray & Sefton, James, 1997. "Fiscal Policy and the Masstricht Solvency Criteria," The Manchester School of Economic & Social Studies, University of Manchester, University of Manchester, vol. 65(3), pages 259-79, June.
- Hughes Hallett, A J & Vines, D, 1993. "On the Possible Costs of European Monetary Union," The Manchester School of Economic & Social Studies, University of Manchester, University of Manchester, vol. 61(1), pages 35-64, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Economists Online Support).
If references are entirely missing, you can add them using this form.