Fiscal policy coordination in the EMU

Ferré, Montserrat

doi:10.1016/j.jpolmod.2007.04.007

Cited by 25 publications

(36 citation statements)

References 19 publications

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“…Von Hagen and Mundschenk (2001) differentiate between narrow coordination, focused on monitoring national policies and practises challenging price stability, leaving relative freedom to policy goals and instruments, and broad coordination where explicit frameworks concerning common policy goals and strategies are developed in an agreement. Ferré (2008) shows in a game theoretical model that broad coordination in fiscal policy would be prefered to narrow coordination. In this broad coordination framework, the incentive to deviate from the agreement comes from the presence of supply shocks and different evolutions in competitiveness, whereas there is no incentive to deviate from the agreement under differential demand shocks, the most important from the point of view of stabilization policies.…”

Section: Discussionmentioning

confidence: 99%

Business cycle convergence in EMU: A second look at the second moment

Cuaresma

Fernández-Amador

2013

Journal of International Money and Finance

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We analyse the dynamics of the standard deviation of demand and supply shocks as well as of the demand component of GDP across countries in the European Monetary Union (EMU). This analysis allows us to evaluate the patterns of cyclical comovement in EMU and compare them the cyclical performance of the new members of the EU and other OECD countries. We make use of sigma-convergence methods to identify synchronization patterns in business cycles. The Eurozone has converged to a stable lower level of dispersion across business cycles during the end of the 80s and the beginning of the 90s. The new EU members have also experienced a strong pattern of convergence from 1998 to 2005, when a strong divergence trend appears. An enlargement of the EMU to 22 members would not significantly decrease its optimality as a currency area. There is evidence for some Europe-specific characteristics as compared to global comovements in business cycles.

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Section: Discussionmentioning

confidence: 99%

Business cycle convergence in EMU: A second look at the second moment

Cuaresma

Fernández-Amador

2013

Journal of International Money and Finance

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“…This type of model, and the structure of presentation of them, stem from the seminal work by Reference [27], and have been used from then when analyzing interactions among economic policies. See for instance References [28][29][30], and the references therein.…”

Section: Sustainable Economic Policies: a Simulation Exercisementioning

confidence: 99%

Stabilization Policies and Technological Shocks: Towards a Sustainable Economic Growth Path

Bongers

Díaz‐Roldán

2019

Sustainability

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The purpose of this paper is to explore the extent to which traditional economic policies can be oriented by sound practices. It is becoming widely accepted that sustainable economic growth (and not only economic growth) is the final target of economic policies, but some economic policies are applied just looking to the short-run without taking in account the long-run perspective. Our aim is to show how a sustainable economic policy-making would be possible, making compatible the stabilization of the economy in the short-run with a sustainable economic growth in the long-run. We confront the design of economic policies with the 17 goals of the 2030 Agenda. We argue that all sustainable development goals can be attained by the design and implementation of sustainable economic policies. Finally, to illustrate this point, we will conduct a simulation exercise to show under which combinations of demand policies technological shocks would promote a path of sustainable growth. Our results will provide a reference framework for a sustainable economic policy-making.

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“…Hence, greater economic policy coordination across EU, accompanied by a fiscal union, will be helpful to address all the above issues. A consolidation effort for financial stability in these countries may therefore require the reassessment of the relevant institutional framework, however in the context of a European macroprudential policy, with clear and binding agreements that make deviations from the agreements less attractive (Ferre, 2008).…”

Section: Concluding Remarks and Policy Implicationsmentioning

confidence: 99%