Giovanni Di Bartolomeo (Public Economics Department, University of Rome La Sapienza) Jacob Engwerda (Department of Econometrics, Tilburg University) Joseph Plasmans (Faculty of Applied Economics UFSIA-RUCA, University of Antwerp) Bas van Aarle (Faculty of Economics LICOS, Catholic University of Leuven)
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In this paper we build a three-country dynamic model of a monetary union (MU), where we focus on how coalitions among policy-makers are formed and what are their effects on the stabilization of output and price. Some preliminary results based on numerical simulations are provided.
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Paper provided by EconWPA in its series Macroeconomics with number
0504023.
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