Fiscal and monetary rules for a currency union

Journal of International Economics

Volumn 77, Issue 1, 2009, Pages 1-10

  Ferrero, Andrea ^a  

^a FEDERAL RESERVE BANK OF NEW YORK   (United States)

Author keywords

Currency union; Flexibility; Optimal policy; Welfare

Indexed keywords

BENCHMARKING; BUSINESS CYCLE; CURRENCY MARKET; FISCAL POLICY; INFLATION; MONETARY UNION; WELFARE ECONOMICS;

EID: 57849167394     PISSN: 00221996     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jinteco.2008.09.004     Document Type: Article

References (29)

1. Adao B., Correia I., and Teles P. On the relevance of exchange rate regimes for stabilization policy (2006) CEPR Discussion Paper 5797
2. Barro R. On the determination of public debt. Journal of Political Economy 87 (1979) 940-971
3. Baxter M., and King R. Fiscal externalities and optimal taxation in an economic community. In: Frenkel J., and Pissarides C. (Eds). NBER International Seminar on Macroeconomics (2005), MIT Press, Cambridge, MA
4. Beetsma R., and Jensen H. Monetary and fiscal policy interaction in a micro-founded model of a monetary union. Journal of International Economics 67 (2005) 320-352
5. Benhabib J., and Eusepi S. The design of monetary and fiscal policy: a global perspective. Journal of Economic Theory 123 (2005) 40-73
6. Benigno P. Optimal monetary policy in a currency area. Journal of International Economics 63 (2004) 293-320
7. Benigno P., and Woodford M. Optimal monetary and fiscal policy: a linear-quadratic approach. In: Gertler M., and Rogoff K. (Eds). NBER Macroeconomics Annual 2003 (2003), MIT Press, Cambridge, MA
8. Benigno P., and López-Salido D. Inflation persistence and optimal monetary policy in the Euro area. Journal of Money, Credit and Banking 38 (2005) 587-614
9. Benigno G., and Benigno P. Designing targeting rules for international monetary cooperation. Journal of Monetary Economics 53 (2006) 473-506
10. Calvo G. Staggered prices in a utility maximizing framework. Journal of Monetary Economics 12 (1983) 383-398
11. Canzoneri M., Cumby R., and Diba B. Fiscal discipline and exchange rate systems. Economics Journal 111 (2001) 667-690
12. Canzoneri M., Cumby R., and Diba B. How do monetary and fiscal policy interact in the European monetary union?. In: Clarida R., Frenkel J., Giavazzi F., and West K. (Eds). NBER International Seminar on Macroeconomics (2004), MIT Press, Cambridge, MA
13. Chari V.V., and Kehoe P. On the need for fiscal constraints in a monetary union. Journal of Monetary Economics 54 (2007) 2399-2408
14. Chari V.V., Christiano L., and Kehoe P. Optimal fiscal policy in a business cycle model. Journal of Political Economy 102 (1994) 617-652
15. European Central Bank, 1999. Monthly Bulletin, January.
16. European Central Bank, 2003. Monthly Bulletin, May.
17. Galí, J., Monacelli, T., 2008. Optimal monetary and fiscal policy in a currency union. Journal of International Economics 76, 116-132.
18. Giannoni M., and Woodford M. Optimal interest-rate rules I: general theory (2002) NBER Working Paper 9419
19. Kenen P. The optimum currency area: an eclectic view. In: Mundell R., and Swoboda A. (Eds). Monetary Problems of the International Economy (1969), University of Chicago Press, Chicago, IL
20. Kirsanova T., Satchi M., Vines D., and Wren-Lewis S. Optimal fiscal policy rules in a monetary union. Journal of Money, Credit and Banking 39 (2007) 1759-1784
21. Leith, C., Wren-Lewis, S., 2007. Counter-cyclical fiscal policy: which instrument is best? University of St. Andrews, unpublished.
22. Lucas R. Macroeconomic priorities. American Economic Review 93 (2003) 1-14
23. McKinnon R. Optimum currency areas. American Economic Review 53 (1963) 717-725
24. Mundell R. A theory of optimum currency areas. American Economic Review 51 (1961) 657-675
25. Schmitt-Grohé S., and Uribe M. Optimal simple and implementable monetary and fiscal rules. Journal of Monetary Economics 54 (2007) 1702-1725
26. Smets F., and Wouters R. An estimated dynamic stochastic general equilibrium model of the Euro area. Journal of the European Economic Association 1 (2003) 1123-1175
27. Svensson L. Open-economy inflation targeting. Journal of International Economics 50 (2000) 155-183
28. Svensson L. What is wrong with Taylor rules? Using judgment in monetary policy through targeting rules. Journal of Economic Literature 41 (2003) 426-477
29. Woodford M. Interest and prices. Foundations of a Theory of Monetary Policy (2003), Princeton University Press, Princeton, NJ