Spanish paper models synergies between demand and supply policies in monetary union
Working paper model sees benefits in jointly implementing structural reforms in the ‘periphery’ of a union, with fiscal expansion in the ‘core’ and forward guidance on interest rates
Research published by the Bank of Spain finds "potentially sizable" short-run economic gains from implementing structural reforms, fiscal expansion and forward guidance for interest rates in a monetary union.
In Policy Spillovers and Synergies in a Monetary Union, Óscar Arce, Samuel Hurtado and Carlos Thomas present a "general equilibrium framework" for analysing the effects of demand and supply-side policies, their spillovers and synergies.
These take place in "an asymmetric monetary union that
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