Suchergebnisse

Is European Monetary Union desirable? Pascal Salin, of the Univeristy of Paris, argues that any system of fixed exchange rates such as the EMS Exchange Rate Mechanism, is likely to prove unsatisfactory.

"An up-to-date analysis of monetary policy, with a particular focus on the United Kingdom. The book considers questions about how it actually works in practice, and what it should do. It also considers many of the contributions made by economists, both theoretical and empirical, which shed light on monetary policy. One of the aims of the book is to impart this knowledge in an intelligible way to those with a reasonable grasp of basic economics"--

Despite the increasing number of studies on monetary policy uncertainty, its role on the strategic interaction between fiscal and monetary policies has not been fully explored. Our paper aims to fill this gap by evaluating the consequences produced by multiplicative uncertainty in such a context. Strategic interaction between fiscal and monetary policies under monetary policy uncertainty. Symbiosis result no longer holds under unknown multiplicative shocks on monetary policy effects. Monetary uncertainty and fiscal uncertainty are not symmetric. Monetary uncertainty may induce both more and less aggressive effects on the final outcomes according to the kind of existing interaction between the government and the central bank. Multiplicative uncertainty implies an endogenous Phillips relationship between inflation and output, which does not emerge under fiscal uncertainty. [Copyright Elsevier B.V.]

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

This paper investigates the dynamic effects of monetary and fiscal policy in a monetary union, which is characterized by asymmetric interest rate transmission. This asymmetry gives rise to intertemporal reversals in the relative effectiveness of policy on member country outputs. The direction and the number of these reversals depend on whether policies are unanticipated or anticipated. We also study the coordination between monetary and fiscal policy in a monetary union. Monetary policy may completely stabilize European output after unanticipated fiscal policy shocks. With anticipated fiscal policy shocks, complete stabilization throughout the overall adjustment process requires monetary policy to be time-inconsistent.