Désajustements de change, fédéralisme budgétaire et redistribution : comment s’ajuster en union monétaire
[Exchange Rate Misalignments, Fiscal Federalism and Redistribution: How to Adjust in a Monetary Union]
AbstractThe euro zone crisis illustrates the insufficiency of adjustment mechanisms in a monetary union characterized by a large heterogeneity. Firstly, the paper gives an evaluation of exchange rate misalignments inside the euro zone, using a FEER approach (Jeong, Mazier and Saadaoui, 2010). Using panel econometric techniques over the period 1994-2010, we confirm that the exchange rate misalignments in the euro zone have diverged, reflecting unsustainable evolutions. Secondly, we use a “stock-flow consistent” model of 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 and social transfers financed by federal taxes and euro-bonds issuing. The stabilizing role of such a federal budget is confirmed facing asymmetric shock or the negative impact of exchange rate misalignments inside the monetary union. Similarly, the stabilizing role of euro-bonds used to finance European investment projects is illustrated.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 42858.
Date of creation: 26 Nov 2012
Date of revision:
Désajustements de taux de change; ajustements; union monétaire; crise de la zone euro;
Other versions of this item:
- Vincent Duwicquet & Jacques Mazier & Jamel Saadaoui, 2013. "Désajustements de change, fédéralisme budgétaire et redistribution. Comment s'ajuster en union monétaire," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(1), pages 57-96.
- E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian
- F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
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