Title
Accession to the euro-area: a stylized analysis using a NK model Accession to the euro-area: a stylized analysis using a NK model
Author
Faculty/Department
Faculty of Applied Economics
Publication type
report
Publication
Antwerp :UA, [*]
Source (series)
Research paper / UA, Faculty of Applied Economics , 2007:15
Volume/pages
27 p.,
Carrier
E
Target language
English (eng)
Affiliation
University of Antwerp
Abstract
This paper analyses the accession to the Euro-Area by new members using a stylized new-Keynesian model. We analyze macro-economic adjustment in the pre- and post accession case and calculate welfare in both situations to obtain net benefit/loss from accession. It is shown how the effects of accession is related to the conduct of monetary policy and fiscal policy in the pre- and post accession case. The simulation examples point at the potential costs that accession might entail due its consequences on monetary and fiscal policy design. These consequences from accession in terms of macro-economic stabilization ability of monetary and fiscal policies have not always been fully acknowledged and need attention in our opinion.
Full text (open access)
https://repository.uantwerpen.be/docman/irua/ddd3bb/63be3439.pdf
Handle