Suchergebnisse

The future European Central Bank needs monetary policy instruments which have yet to be agreed. At present, the range of instruments is very heterogeneous in the potential member states. This book offers a systematic analysis of the issue, considering general theoretical arguments as well as the concrete institutional situation in European countries. Taking the Bundesbank's instruments as the starting point, their rationale is discussed against the background of experience elsewhere. The theoretical and empirical treatment leads to several competing concepts. Taking the three goals of monetary efficiency, fair competition and decentralization establishes a strong case for the use of "standing facilities" and to a lesser extend "reserve requirements", albeit modified and brought up-to-date

Using a DSGE model calibrated to the euro area, we analyze the international effects of afiscal devaluation (FD) implemented as a revenue-neutral shift from employer's socialcontributions to the Value Added Tax. We find that a FD in 'Southern European countries'has a strong positive effect on output, but mild effects on the trade balance and the realexchange rate. Since the benefits of a FD are small relative to the divergence incompetitiveness, it is best addressed through structural reforms