European Monetary Union

1. Front Matter

   Pages I-XIV

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2. Introduction

   1. Introduction

      • Michael Carlberg

      Pages 1-7

3. Brief Survey of the Literature

   1. Brief Survey of the Literature

      • Michael Carlberg

      Pages 9-11

4. Simple Models

   1. Front Matter

      Pages 13-13

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   2. Small Country in Large Union

      • Michael Carlberg

      Pages 15-23

   3. Small Union as a Whole

      • Michael Carlberg

      Pages 23-31

5. Small Union

   1. Front Matter

      Pages 33-33

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   2. Small Union of Two Countries

      • Michael Carlberg

      Pages 35-95

   3. Small Union of Three Countries

      • Michael Carlberg

      Pages 97-103

   4. Small Union of Ten Countries

      • Michael Carlberg

      Pages 105-108

   5. No Capital Mobility between Union and Rest of the World

      • Michael Carlberg

      Pages 109-120

6. Small Union and Associated Countries

   1. Front Matter

      Pages 121-121

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   2. Small Union as a Whole

      • Michael Carlberg

      Pages 123-142

   3. Small Union of Two Countries

      • Michael Carlberg

      Pages 143-146

   4. Summary

      • Michael Carlberg

      Pages 147-149

7. Large Union

   1. Front Matter

      Pages 151-151

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   2. Large Union and Rest of the World

      • Michael Carlberg

      Pages 153-167

   3. Small Country in Large Union

      • Michael Carlberg

      Pages 169-170

   4. Large Union of Two Countries

      • Michael Carlberg

      Pages 171-184

   5. No Capital Mobility between Union and Rest of the World

      • Michael Carlberg

      Pages 185-191

This book explores the new macroeconomics of the European Monetary Union. It carefully discusses the effects of shocks and policy measures on em­ ployment, prices, and the current account. Take for instance a shock or a policy measure in a specific union country. Then what will be the results in the specific country, in the other union countries, and in the rest of the world? The targets of economic policy are full employment and price stability in each of the union of economic policy are monetary policy by the Euro­ countries. The instruments pean Central Bank and fiscal policies by national governments. What is the appropriate policy mix? A salient feature of this book is the numerical estimation of shock and policy multipliers. Money wages are fixed, flexible or downward rigid. The monetary union can be small or large. I had many helpful talks with Gerd Focke, Daphni-Marina Papadopoulou, Franco Reither, Wolf Schafer, Christine Schafer-Lochte, and Michael Schmid. In addition, Michael Brauninger and Michael Cyrus carefully discussed with me all parts of the manuscript. Last but not least, Doris Ehrich did the secretarial work as excellently as ever. I wish to thank all of them. Executive Summary 1) Small monetary union of two identical countries, say Gennany and France. The monetary union is a small open economy with perfect capital mobili­ ty. Let us begin with fiscal policy.

• European Central Bank
• European Monetary Union
• Europäische Währungsunion
• Europäische Zentralbank
• Fiskalpolitik
• Geldpolitik
• Preisstabilität
• Price Stability
• Währungsunion
• economic policy
• fiscal policy
• macroeconomics
• monetary policy
• monetary union

• Department of Economics, Federal University, Hamburg, Germany

  Michael Carlberg

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