Policy Competition and Policy Cooperation in
a Monetary Union

Opis książki: Policy Competition and Policy Cooperation in a Monetary Union

This book studies the interactions between monetary and fiscal policies in the Euro area. The policy makers are the union central bank, the German government, the French government and other governments. The policy targets are price stability in the union, full employment in Germany, full employment in France, etc. The policy instruments are union money supply, German government purchases, French government purchases, etc. As a rule, the spillovers of fiscal policy are negative. The policy makers follow either cold-turkey or gradualist strategies. The policy decisions are taken sequentially or simultaneously. Policy expectations are adaptive or rational. This book carefully discusses the case for central bank independence and fiscal cooperation. TOC:Introduction.- The Monetary Union of Two Countries: Basic Models: Monetary Policy in the Union.- Fiscal Competition between Germany and France.- Fiscal Cooperation between Germany and France.- Competition between the Union Central Bank, the German Government and the French Government.- Cooperation between the Union Central Bank, the German Government and the French Government.- Independent Central Bank, Fiscal Cooperation between Germany and France.- A Synopsis of the Basic Models.- The Monetary Union of Two Countries: Intermediate Models: Fiscal Competition: A General Model.- The Union Countries Differ in Size.- The Union Countries Differ in Behaviour.- Simultaneous and Independent Decisions.- Gradualist Policies.- Alternative Targets of the Union Central Bank.- The German Government Targets Overemployment.- No Spillovers of Fiscal Policy.- Positive Spillovers of Fiscal Policy.- The Monetary Union of Two Countries: Advanced Models: Cold-Turkey Policies: Sequential Decisions.- Cold-Turkey Policies: Simultaneous Decisions.- Gradualist Policies: Sequential Decisions.- Gradualist Policies: Simultaneous Decisions.- Monetary, Fiscal and Wage Competition.- The Monetary Union of n Countries: The Monetary Union of Three Countries.- The Monetary Union of Four Countries.- Rational Policy Expectations: Rational Policy Expectations in Germany and France.- Adaptive Policy Expectations in Germany and France.- Adaptive Policy Expectations in Germany, Rational Policy Expectations in France.