Macroeconomic analysis of monetary unions: a general framework based on the mundell-fleming model

The book develops a general framework for the macroeconomic modeling of monetary unions. The starting point of the analysis is the standard two-country Mundell-Fleming model with perfect capital mobility, extended to incorporate the supply side in a context of rigid real wages, and modified so that the money market is common for two countries forming a monetary union. The model is presented in two versions: for a small and a large monetary union, respectively. After solving each model, the authors derive multipliers for monetary, expenditure, supply, and external shocks, both in the short and the long run; a graphical analysis is also provided. Special attention is paid to the crucial distinction between symmetric and asymmetric shocks. The model has been specifically designed for a monetary union The supply side is completely developed We examine the effects of all possible shocks affecting an economy The analysis is performed both in the short and in the long run INDICE: Introduction. The Model: Description of the Model; A MacroeconomicModel for a Monetary Union; Characterization of the Shocks.-The Model for a Small Monetary Union: Shock Multipliers; Graphical Analysis. The Model for a Large Monetary Union: Shock Multipliers; Graphical Analysis. Conclusions. Appendix.

• ISBN: 978-3-642-19444-3
• Editorial: Springer Berlin Heidelberg
• Encuadernacion: Rústica
• Páginas: 50
• Fecha Publicación: 22/03/2011
• Nº Volúmenes: 1
• Idioma: Inglés