Quantitative Economic Policy

1. Front Matter

   Pages i-xviii

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2. Optimal policy design in interdependent economies

   1. Quantitative Economic Policy — Theory and Applications: Introduction and Overview

      • Reinhard Neck, Christian Richter, Peter Mooslechner

      Pages 1-14

3. Theory of Quantitative Economic Policy

   1. Towards a New Theory of Economic Policy: Continuity and Innovation

      • Nicola Acocella, Giovanni Di Bartolomeo

      Pages 15-34

   2. If the Representative Agent is Used, Should He Be Believed? Aggregation, Welfare and the Role of Microfoundations in Quantitative Economic Policy

      • John Lewis

      Pages 35-49

   3. Time Consistency, Subgame Perfectness, Solution Concepts and Information Patterns in Dynamic Models of Stabilization Policies

      • Engelbert J. Dockner, Reinhard Neck

      Pages 51-101

   4. Models of Endogenous Coalition Formation Between Fiscal and Monetary Authorities in the Presence of a Monetary Union

      • Tomasz Michalak, Jacob Engwerda, Joseph Plasmans, Bas van Aarle, Giovanni Di Bartolomeo

      Pages 103-136

4. Fiscal Policy

   1. Fiscal Federalism, Risk Sharing and the Persistence of Shocks

      • Scott Davis

      Pages 137-155

   2. Debating Fiscal Federalism in EMU: Plus ça change...

      • Maria Demertzis

      Pages 157-184

   3. A Common Election Day for Euro-Zone Member States?

      • Fritz Breuss

      Pages 185-207

   4. Automatic Stabilisers and Budget Rules

      • Torben M. Andersen, Svend E. Hougaard Jensen

      Pages 209-220

5. Monetary Policy

   1. Domestic and International Determinants of the Bank of England’s Liquidity Ratios during the Classical Gold Standard, 1876–1913: An Econometric Analysis

      • Giuseppe Tullio, Jürgen Wolters

      Pages 221-240

   2. On the Transmission Mechanism of Monetary Policy

      • Christian Richter

      Pages 241-259

   3. From the EMS to EMU: Has There Been Any Change in the Behaviour of Exchange Rate Correlation?

      • Xiao-Ming Li

      Pages 261-273

   4. Optimum Monetary Policy during Monetary Union Enlargement

      • Ali Sina Önder

      Pages 275-291

   5. When the Dollar Falls

      • Simon Wren-Lewis

      Pages 293-308

   6. Monetary Policy in a Small Open Economy with High Unemployment

      • Christopher Malikane, Willi Semmler

      Pages 309-336

   7. Uncertainties Surrounding Natural Rate Estimates in the G7

      • Rod Cross, Julia Darby, Jonathan Ireland

      Pages 337-363

6. Back Matter

   Pages 365-377

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Quantitative economic policy and econometrics were developed along with macroeconomics in the 1930s. Econometric techniques and models are still being used extensively in the business of forecasting and policy advice. In particular, policy simulations with econometric models have become standard tools for evaluating and designing macroeconomic stabilization policies. For instance, such studies provided important arguments for the popularization of the recent steps towards European integration such as the European Single Market, the European Monetary Union, and the Enlargement of the European Union. In this book, some recent advances in the theory and applications of quantitative economic policy are presented, with particular emphasis on fiscal and monetary policies in a European and global context. Andrew Hughes Hallett, a pioneer and major scientist in quantitative economic policy analysis, is being honoured by this volume, whose contributors are among his friends and former students.

• Econometrics
• Economic Policy
• European Integration
• Macroeconomics
• Quantitative Analysis
• agents

• Department of Economics, Klagenfurt University, Klagenfurt, Austria

  Reinhard Neck

• Department of Economics, Loughborough University, Loughborough, UK

  Christian Richter

• Oesterreichische Nationalbank, Wien, Austria

  Peter Mooslechner

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