Fiscal Policy and Macroeconomic Stability Within a Currency Union.
We analyse the stability of countries within a monetary union in the face of asymmetric shocks, using a simple but widely applicable model. We show that members of the union may be subject to severe, and possibly unstable, cycles following asymmetric shocks if there is a significant backward looking...
| Main Authors: | , , |
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| Format: | Working paper |
| Language: | English |
| Published: |
CEPR
2006
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