Policy Rules in the Euro Area and International Interdependencies

van Aarle B., H. Garretsen and F. Huart (2004), “Policy Rules in the Euro Area and International Interdependencies”, Applied Economics Quarterly, 50(3), 279-297.

17 Pages Posted: 22 Apr 2020

See all articles by Bas Van Aarle

Bas Van Aarle

Leuven Centre for Irish Studies LCIS; CESifo (Center for Economic Studies and Ifo Institute); Radboud University Nijmegen - Department of Economics

Harry Garretsen

Utrecht University - School of Economics; CESifo (Center for Economic Studies and Ifo Institute); Radboud University Nijmegen - Department of Economics

Florence Huart

Université de Lille, LEM - CNRS (UMR 9221)

Date Written: 2004

Abstract

This paper studies the design, effects and interactions of monetary and fiscal policies in the euro area. A stylized New Keynesian model with backward and forward looking dynamics is developed and augmented with monetary and fiscal policy rules. Numerical simulations are used to assess the effects of demand and supply shocks and the role of monetary and fiscal policies in their transmission.

Keywords: EMU, Fiscal Policy, Monetary Policy, Taylor Rules

JEL Classification: F31, F41, G15

Suggested Citation

van Aarle, Bas and Garretsen, Harry and Huart, Florence, Policy Rules in the Euro Area and International Interdependencies (2004). van Aarle B., H. Garretsen and F. Huart (2004), “Policy Rules in the Euro Area and International Interdependencies”, Applied Economics Quarterly, 50(3), 279-297., Available at SSRN: https://ssrn.com/abstract=3562491

Bas Van Aarle

Leuven Centre for Irish Studies LCIS ( email )

Janseniusstraat 1
Leuven, 3000
Belgium
+32 16 310433 (Phone)
+32 16 310431 (Fax)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.cesifo.de

Radboud University Nijmegen - Department of Economics ( email )

P.O.Box 9108
6500 HK Nijmegen
Netherlands
+31 24 3616172 (Phone)
+31 24 3611846 (Fax)

Harry Garretsen

Utrecht University - School of Economics ( email )

Kriekenpitplein 21-22
Adam Smith Building
Utrecht, 3584 EC
Netherlands
+31 0 30 253 9810 (Phone)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.cesifo.de

Radboud University Nijmegen - Department of Economics ( email )

Nijmegen, 6500 HK
Netherlands
+31 24 361 5889 (Phone)
+31 24 361 1846 (Fax)

Florence Huart (Contact Author)

Université de Lille, LEM - CNRS (UMR 9221) ( email )

Cité scientifique
Villeneuve d'Ascq Cedex, 59655
France
33 (0)3 20 33 59 98 (Phone)

HOME PAGE: http://florence-huart.univ-lille1.fr/

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