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• W2171461570 abstract "We assess the role of national fiscal policies, as automatic stabilizers, within a monetary union. We use a two-country New Keynesian DSGE model, incorporating non-Ricardian consumers and a home bias in national consumption. Fiscal policy directly stabilizes non-Ricardian agents' consumption. By doing so it contributes to the reduction in the volatility of variables such as output, wage inflation, and real interest rates. Our analysis of country-specific shocks does not suggest potential inter-country conflicts (as long as policies are constrained within the automatic stabilizers framework). However, we detect a potential conflict between the two consumer groups, because fiscal policy may raise optimizing agents' consumption volatility." @default.
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• W2171461570 date "2008-08-01" @default.
• W2171461570 modified "2023-09-26" @default.
• W2171461570 title "The Role of Fiscal Policy in a Monetary Union: are National Automatic Stabilizers Effective?" @default.
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• W2171461570 doi "https://doi.org/10.1111/j.1467-9396.2008.00747.x" @default.
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