The Goldilocks economy of the United States in comparison with Europe: an analysis with EUROMON
AbstractThe economic development in the United States has been very successful over the past decade, with high economic growth being accompanied by relatively low inflation. This article explores this development, comparing the economy of the United States with that of the EMU. In addition, it considers the contrasts between the large and the small EMU countries as regards the correlation between inflation and unemployment. Analyses based on simulations using the Bank's multicountry model EUROMON show how the economy in the United States would have developed in circumstances more typical of a 'standard economy', to which the traditional Phillips curve applies. Subsequently, also drawing on simulations, this article discusses several aspects of the new economy in the United States and the EMU, i.e. spending impulses in combination with more scope for market forces, and in combination with technological progress, for example, in the field of computers and information.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 29633.
Date of creation: Mar 2000
Date of revision:
economic growth; inflation; unemployment; new economy; EMU; information technology;
Find related papers by JEL classification:
- J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
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- W. Bolt & P.J.A. van Els, 1998.
"Output gap and inflation in the EU,"
WO Research Memoranda (discontinued), Netherlands Central Bank, Research Department
550, Netherlands Central Bank, Research Department.
- W. Bolt & P.J.A. van Els, 2000. "Output Gap and Inflation in the EU," DNB Staff Reports (discontinued), Netherlands Central Bank 44, Netherlands Central Bank.
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