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Pacte de stabilité, crédibilité du policy mix et coordination des politiques budgétaires en union monétaire

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  • Patrick Villieu

Abstract

We construct a two countries model of a monetary union and explore credibility and cooperation problems in policy mix. Contractual solutions are considered. Delegation of monetary policy to an independent inflation adverse central banker may be counterproductive. To obtain the first best, a complete set of monetary and fiscal contracts must be designed. Furthermore, the optimal fiscal contracts are stat- contingent or, at least, linear-quadratic, two ways which appear too complex to be practicable. The stability Pact, which corresponds to a linear non state-contingent contract with an escape clause, may be viewed as a second best solution. Codification JEL : E5, H5, F4

Suggested Citation

  • Patrick Villieu, 2003. "Pacte de stabilité, crédibilité du policy mix et coordination des politiques budgétaires en union monétaire," Revue économique, Presses de Sciences-Po, vol. 54(1), pages 25-46.
  • Handle: RePEc:cai:recosp:reco_541_0025
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    Cited by:

    1. Oros, Cornel & Zimmer, Blandine, 2015. "Uncertainty and fiscal policy in a monetary union: Why does monetary policy transmission matter?," Economic Modelling, Elsevier, vol. 50(C), pages 85-93.
    2. BARBIER-GAUCHARD Amélie, 2005. "Fiscal federalism, discipline and selection adverse in the EU : Lessons from a theoretical model," Economics Bulletin, AccessEcon, vol. 5(11), pages 1-8.
    3. Nils Soguel, 2006. "Coordination et décentralisation des règles budgétaires dans une structure fédéraliste. Le cas des cantons suisses," Revue d'économie régionale et urbaine, Armand Colin, vol. 0(1), pages 27-48.
    4. BESSO, Christophe Raoul & Chameni Nembua, Célestin, 2013. "CONTRAT OPTIMAL EN ZONE MONETAIRE HETEROGENE : Cas de la Zone Franc
      [OPTIMAL CONTRACT IN HETEROGENEOUS ECONOMIC MONETARY UNION:case of zone Franc]
      ," MPRA Paper 47256, University Library of Munich, Germany.
    5. Claudiu T. Albulescu & Cornel Oros, 2014. "The policy-mix in the Euro Area: The Role of Financial Stability," Economics Bulletin, AccessEcon, vol. 34(2), pages 705-717.
    6. Samuel GUERINEAU & Sylviane GUILLAUMONT JEANNENEY, 2007. "Can domestic debt contribute to the financing of the “Millennium Development Goals” ? The case of the West African Economic and Monetary Union (WAEMU)," Working Papers 200720, CERDI.
    7. COMBEY, Adama & NUBUKPO, Kako, 2013. "Coordination des Politiques Economiques au Sein de la Zone UEMOA : Bilan et Perspectives
      [Economic Policy Coordination in the WAEMU: Results and Prospects]
      ," MPRA Paper 58118, University Library of Munich, Germany, revised Aug 2014.

    More about this item

    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance

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