Macroeconomics of Monetary Union

1. Front Matter

   Pages I-XVI

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2. Introduction

   1. Introduction

      Pages 1-8

3. Monetary and Fiscal Policies Basic Models

   1. Front Matter

      Pages 9-9

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   2. Monetary Policy in Europe

      Pages 11-22

   3. Fiscal Policies in Germany and France

      Pages 23-28

   4. Competition between European Central Bank, German Government, and French Government

      Pages 29-41

   5. Cooperation between European Central Bank, German Government, and French Government

      Pages 42-51

4. Monetary and Fiscal Policies Intermediate Models

   1. Front Matter

      Pages 53-53

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   2. Simultaneous Decisions: Cold-Turkey Policies

      Pages 55-59

   3. Simultaneous Decisions: Gradualist Policies

      Pages 60-64

   4. Fiscal Shocks in Germany

      Pages 65-68

   5. The Countries Differ in Size

      Pages 69-77

   6. The Countries Differ in Behaviour

      Pages 78-86

   7. Rational Policy Expectations

      Pages 87-88

5. Monetary and Fiscal Policies The Case of Three Countries

   1. Front Matter

      Pages 89-89

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   2. Monetary Policy in Europe

      Pages 91-97

   3. Fiscal Policies in Germany, France and Italy

      Pages 98-102

   4. Monetary and Fiscal Competition

      Pages 103-109

   5. Monetary and Fiscal Cooperation

      Pages 110-115

6. Monetary and Wage Policies Basic Models

   1. Front Matter

      Pages 117-117

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This book, unlike other books, provides readers with a practical yet sophisticated grasp of the macroeconomic principles necessary to understand a monetary union. By definition, a monetary union is a group of countries that share a common currency. The most important case in point is the euro area. Policy makers are the central bank, national governments, and national labour unions. Policy targets are price stability and full employment. Policy makers follow cold-turkey or gradualist strategies. Policy decisions are taken sequentially or simultaneously. The countries can differ in size or behaviour. Policy expectations are adaptive or rational. To illustrate all of this there are numerical simulations of monetary policy, fiscal policy, and wage policy. The present book is part of a larger research project on European Monetary Union, see the references given at the back of the book. Some parts of this project were presented at the World Congress of the International Economic Association, at the International Conference on Macroeconomic Analysis, at the International Institute of Public Finance, and at the International Atlantic Economic Conference. Other parts were presented at the Macro Study Group of the German Economic Association, at the Annual Meeting of the Austrian Economic Association, at the Gottingen Workshop on International Economics, at the Halle Workshop on Monetary Economics, at the Research Seminar on Macroeconomics in Freiburg, at the Research Seminar on Economics in Kassel, and at the Passau Workshop on International Economics.

• Euro
• European Monetary Union
• Fiscal Policy
• International Policy Coordination
• Macroeconomics
• Monetary Policy
• Monetary Union
• Simulation
• Unions
• Wage Policy

• Helmut Schmidt University, Federal University of Hamburg, Hamburg, Germany

  Michael Carlberg

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