Suche nach Schlagworten '10051-5'
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Title: Monetary and fiscal interactions in open economies |
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Abstract A two-country sticky-price model is used to analyse the interactions between fiscal and monetary policy. The role of an 'activist' fiscal policy as a stabilisation tool is considered and a measure of the welfare gains from international fiscal policy cooperation is derived. It is found that welfare gains from fiscal cooperation do exist provided monetary policy is set cooperatively. There are also welfare gains from fiscal policy cooperation in a monetary union. However, it is found that a 'non-activist' fiscal policy can be better than non-cooperative fiscal policy when the international correlation of shocks is strongly negative. And non-cooperative fiscal policy can be better than cooperative fiscal policy if monetary policy is not set cooperatively. [Giovanni Lombardo ; Alan Sutherland] |
Author: Lombardo, Giovanni | Sutherland, Alan |
Series Title: Working paper series / European Central Bank ; 289 |
Publisher: European Central Bank |
Year: 2003 |
Language: en |
Ressource: Einzelne Arbeitspapiere, Preprints |
Keyword: Fiscal PolicyMonetary PolicyOpen economyTheoryEconomic policy target |
Subject: Currency. Monetary policyFinancing. Private finance. Financial policy |
Online Ressource: vorübergehend nicht erreichbar! |
Bitte beachten Sie die urheberrechtlichen Bedingungen der Dokumentenbenutzung / Please observe the copyright when accessing the document | Quelle / Source: Europäische Zentralbank (http://www.ecb.int) |
Title: Non-fundamental exchange rate volatility and welfare |
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Abstract We lay out an empirical and a theoretical model to analyze the effects of non-fundamental exchange rate volatility on economic activity and welfare. In the first part of the paper, the GARCH-SVARmodel is applied to measure empirically the effect of the conditional exogenous exchange rate volatility on the conditional mean of the endogenous variables in our open economy VAR. Our results for Canada, Germany and UK indicate that the effects of exchange rate uncertainty are small empirically. In the second part, we investigate the effect of non-fundamental exchange rate volatility in a stochastic open economy model. The second order approximation method of Sims [2003] is applied to the model equilibrium conditions. We show that in a model with habit persistence, even non-fundamental exchange rate volatility that generate only small variation in the unconditional mean of the variables might induce economically significant welfare changes. [Roland Straub and Ivan Tchakarov] |
Author: Straub, Roland | Tchakarov, Ivan |
Series Title: Working paper series / European Central Bank ; 328 |
Publisher: European Central Bank |
Year: 2004 |
Language: en |
Ressource: Einzelne Arbeitspapiere, Preprints |
Keyword: ARCH modelOpen economyTheoryVolatilityExchange rateWelfare effect |
Subject: Foreign trade. Trade relationsCurrency. Monetary policy |
Online Ressource: vorübergehend nicht erreichbar! |
Bitte beachten Sie die urheberrechtlichen Bedingungen der Dokumentenbenutzung / Please observe the copyright when accessing the document | Quelle / Source: Europäische Zentralbank (http://www.ecb.int) |
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