Supply-policy coordination in a monetary union

This paper examines how the member countries of a large monetary union react to country-specific shocks, and to shocks from the rest of the world, using supply-side policies. We develop a three-country model in which two of the countries form a monetary union where an independent central bank to con...

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Detalhes bibliográficos
Autor: Díaz Roldán, Carmen
Tipo de documento: artigo
Estado:Versão publicada
Data de publicação:2003
País:México
Recursos:EL COLEGIO DE MÉXICO
Repositório:Estudios Económicos de El Colegio de México
Idioma:inglês
OAI Identifier:oai:oai.estudioseconomicos.colmex.mx:article/185
Acesso em linha:https://estudioseconomicos.colmex.mx/index.php/economicos/article/view/185
Access Level:Acceso aberto
Palavra-chave:monetary union
supply-side policies
monetary shocks
E61
E62
F42
unión monetaria
políticas de oferta
perturbaciones monetarias
Descrição
Resumo:This paper examines how the member countries of a large monetary union react to country-specific shocks, and to shocks from the rest of the world, using supply-side policies. We develop a three-country model in which two of the countries form a monetary union where an independent central bank to control monetary policy, and supply-side policies are determined by the authorities at the national level. In this framework, we analyse in strategic terms how the authorities can deal with monetary, real and supply shocks, and discuss the welfare aspects of the optimal solution and the extent to which a coordinated supply-side policy may be useful to deal with those shocks.