Optimal monetary and fiscal policy in a currency union

• 成果类型: Article
• 署名作者: Gali, Jordi; Monacelli, Tommaso
• 署名单位: Bocconi University; Pompeu Fabra University
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2008.02.007
• 发表日期: 2008
• 页码: 116-132
• 关键词: Monetary union; sticky prices; Countercyclical policy; inflation differentials

摘要

We lay out a tractable model for the analysis of optimal monetary and fiscal policy in a currency union. The monetary authority sets a common interest rate for the union, whereas fiscal policy is implemented at the country level, through the choice of government spending. In the presence of country-specific shocks and nominal rigidities, the policy mix that is optimal from the viewpoint of the union as a whole requires that inflation be stabilized at the union level by the common central bank, whereas fiscal policy has a country-specific stabilization role, one beyond the efficient provision of public goods. (C) 2008 Elsevier B.V. All rights reserved.