The Library
Monetary-fiscal crosswinds in the European Monetary Union
Tools
Reichlin, Lucrezia, Ricco, Giovanni and Tarbé, Matthieu (2023) Monetary-fiscal crosswinds in the European Monetary Union. European Economic Review , 151 . 104328. doi:10.1016/j.euroecorev.2022.104328 ISSN 0014-2921.
|
PDF
WRAP-Monetary-fiscal-crosswinds-in-the-European-Monetary-Union-Ricco-2023.pdf - Published Version - Requires a PDF viewer. Available under License Creative Commons Attribution Non-commercial No Derivatives 4.0. Download (1118Kb) | Preview |
Official URL: https://doi.org/10.1016/j.euroecorev.2022.104328
Abstract
We study the monetary–fiscal mix in the European Monetary Union. The medium and long-run effects of conventional and unconventional monetary policy are analysed by combining monetary policy shocks identified in a Structural VAR, and the general government budget constraint featuring a single central bank and multiple fiscal authorities. In response to a conventional easing of the policy rate, the cumulated response of the fiscal deficit is positive. Conversely, in response to an unconventional easing affecting the long end of the yield curve, the primary fiscal position barely moves. This is consistent with the long-run effect of unconventional monetary easing on the price index, which is about half that of conventional easing. The aggregate long-run cumulated surplus is mainly driven by Germany’s fiscal policy during the period in which unconventional monetary policy was adopted.
Item Type: | Journal Article | ||||||||
---|---|---|---|---|---|---|---|---|---|
Subjects: | H Social Sciences > HG Finance H Social Sciences > HJ Public Finance |
||||||||
Divisions: | Faculty of Social Sciences > Economics | ||||||||
SWORD Depositor: | Library Publications Router | ||||||||
Library of Congress Subject Headings (LCSH): | Monetary policy, Fiscal policy -- European Union countries, Monetary unions -- European Union countries, Economic and Monetary Union | ||||||||
Journal or Publication Title: | European Economic Review | ||||||||
Publisher: | Elsevier | ||||||||
ISSN: | 0014-2921 | ||||||||
Official Date: | January 2023 | ||||||||
Dates: |
|
||||||||
Volume: | 151 | ||||||||
Number of Pages: | 16 | ||||||||
Article Number: | 104328 | ||||||||
DOI: | 10.1016/j.euroecorev.2022.104328 | ||||||||
Status: | Peer Reviewed | ||||||||
Publication Status: | Published | ||||||||
Access rights to Published version: | Open Access (Creative Commons) | ||||||||
Date of first compliant deposit: | 16 January 2023 | ||||||||
Date of first compliant Open Access: | 16 January 2023 | ||||||||
Related URLs: |
Request changes or add full text files to a record
Repository staff actions (login required)
View Item |
Downloads
Downloads per month over past year