Macroeconomic Analysis of Monetary Unions [electronic resource] : A General Framework Based on the Mundell-Fleming Model / by Oscar Bajo-Rubio, Carmen Díaz-Roldán.
By: Bajo-Rubio, Oscar [author.].
Contributor(s): Díaz-Roldán, Carmen [author.] | SpringerLink (Online service).
Material type:
BookSeries: SpringerBriefs in Economics: Publisher: Berlin, Heidelberg : Springer Berlin Heidelberg, 2011Description: VII, 50p. 10 illus. online resource.Content type: text Media type: computer Carrier type: online resourceISBN: 9783642194450.Subject(s): Economics | International economics | Macroeconomics | Economics/Management Science | Economic Theory | Macroeconomics/Monetary Economics | International EconomicsDDC classification: 330.1 Online resources: Click here to access online Introduction -- The Model: Description of the Model; A Macroeconomic Model 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.
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.
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