Compatibility between monetary and fiscal policy under EMU

European Economic Review

Volumn 50, Issue 6, 2006, Pages 1529-1556

  Leith, Campbell ^a   Wren Lewis, Simon ^b  

^a UNIVERSITY OF GLASGOW   (United Kingdom)

^b UNIVERSITY OF EXETER   (United Kingdom)

Author keywords

EMU; Fiscal policy; Fiscal theory of the price level; Monetary policy; Stability and growth pact

Indexed keywords

COMPETITIVENESS; ECONOMIC GROWTH; EUROPEAN MONETARY UNION; FISCAL POLICY; INFLATION; MONETARY POLICY;

EID: 33745431847     PISSN: 00142921     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.euroecorev.2005.04.003     Document Type: Article

References (23)

1. Bergin P.R. Fiscal solvency and price level determination in a monetary union. Journal of Monetary Economics 45 (2000) 37-53
2. Calvo G. Staggered prices in a utility maximising framework. Journal of Monetary Economics 12 3 (1983) 383-398
3. Canzoneri M.B., Cumby R.E., and Diba B.T. Is the price level determined by the needs of fiscal solvency. American Economic Review 91 5 (2001) 1221-1238
4. Canzoneri M.B., Cumby R.E., and Diba B.T. Fiscal discipline and exchange rate systems. Economic Journal 474 (2001) 667-690
5. Cochrane, J.H., 1998. A frictionless view of US inflation. NBER Macroeconomics Annual.
6. Erceg C.J., Henderson D.W., and Levin A.T. Optimal monetary policy with staggered wage and price contracts. Journal of Monetary Economics 46 (2000) 281-313
7. ECB, 2001. Euro area statistics. Monthly Bulletin, August 2001, pp. 1*-83*.
8. Faruqee H., Laxton D., and Symansky S. Government debt, life-cycle income, and liquidity constraints: Beyond approximate Ricardian equivalence. IMF Staff Papers 44 3 (1997) 374-382
9. Gali J. Government size and macroeconomic stability. European Economic Review 28 (1994) 117-132
10. Gali J., Gertler M., and Lopez-Salido G.D. European inflation dynamics. European Economic Review 45 (2001) 1237-1270
11. Leeper E.M. Equilibria under 'active' and 'passive' fiscal policies. Journal of Monetary Economics 27 (1991) 129-147
12. Leith, C., Malley, J., 2005. Estimated general equilibrium models for the evaluation of monetary policy in the US and Europe. European Economic Review, forthcoming. PII: S0014-2921(04)00095-9.
13. Leith C., and Wren-Lewis S. Interactions between monetary and fiscal policy rules. Economic Journal 110 462 (2000) 93-108
14. Leith, C., Wren-Lewis, S., 2001. Interactions between monetary and fiscal policy under EMU. University of Glasgow, Discussion Paper No. 2001-15.
15. Obstfeld M., and Rogoff K. Exchange rate dynamics redux. Journal of Political Economy 103 (1995) 624-660
16. Rotemberg, J.J., Woodford, M., 1998. An optimization-based econometric framework for the evaluation of monetary policy: Expanded version. NBER Technical Working Paper No. 233.
17. Sargent, T., Wallace, N., 1981. Some unpleasant monetarist arithmetic. Federal Reserve Bank of Minneapolis Quarterly Review.
18. Sims C.A. Fiscal foundations of price stability in open economies (1997), Mimeograph, Yale University
19. Sims C.A. The precarious fiscal foundations of EMU (1999), Mimeograph, Yale University
20. Taylor J. Discretion versus policy rules in practice. Carnegie-Rochester Series on Public Policy 39 (1993) 195-214
21. Woodford M. Price-level determinacy without control of a monetary aggregate. Carnegie-Rochester Conference Series on Public Policy 43 (1995) 1-53
22. Woodford M. Control of the public debt: A requirement for price stability?. In: Calvo G., and King M. (Eds). The Debt Burden and its Consequences for Monetary Policy (1998), St Martin's Press, New York
23. Wren-Lewis, S., 2003. The compatibility between monetary and fiscal policies in EMU: A perspective from the Fiscal theory of the price level. in: Buti, M. (Ed.), Monetary and Fiscal Policies in EMU: Interactions and Coordination, Cambridge University Press, Cambridge.