Monetary and Fiscal Policy Rules in the EMU

van Aarle B., H. Garretsen and F. Huart (2004b), “Monetary and Fiscal Policy Rules in the EMU”, German Economic Review, 5(4), 407-434. Doi-org./10.1111/j.1465-6485.2004.00115.x

Posted: 22 Apr 2020

See all articles by Florence Huart

Florence Huart

Université de Lille, LEM - CNRS (UMR 9221)

Date Written: 2004

Abstract

This paper studies the design and effects of monetary and fiscal policy in the euro area. To do so, a stylized two‐region model of monetary and fiscal policy rules in the EMU is built. We analyse how monetary and fiscal rules affect the adjustment dynamics in the model. Both the effects on the individual countries and on the EMU aggregate economy are studied. Three aspects play an important role in the analysis: (i) the consequences of alternative monetary and fiscal policy rules, (ii) the consequences of asymmetries between EMU countries (asymmetries in macroeconomic shocks and macroeconomic structures), and (iii) the role of alternative degrees of backward‐ and forward‐looking behaviour in consumer decisions and inflation expectations.

Keywords: EMU, fiscal policy, monetary policy, policy rules

JEL Classification: F31, F41, G15

Suggested Citation

Huart, Florence, Monetary and Fiscal Policy Rules in the EMU (2004). van Aarle B., H. Garretsen and F. Huart (2004b), “Monetary and Fiscal Policy Rules in the EMU”, German Economic Review, 5(4), 407-434. Doi-org./10.1111/j.1465-6485.2004.00115.x, Available at SSRN: https://ssrn.com/abstract=3562503

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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