Monetary Policy in Emu With Asymmetric Transmission and Non‐tradable Goods
Bibliographic Data
| ID | 10493830 |
|---|---|
| Authors | Daniel Gros (0000-0002-2911-8235, Centre for European Policy Studies, corresponding author), Carsten Hefeker (0000-0002-9052-8030, University of Siegen) |
| Year | 2007 |
| Volume | 54 |
| Issue | 2 |
| Pages | 268-282 |
| Publication date | 2007-04-13 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Scottish Journal of Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0036-9292 • E-ISSN: 1467-9485 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/j.1467-9485.2007.00414.x |
| OpenAlex | W2058175720 |
| Language | EN |
| References cited | 27 |
Which policy objective should a central bank pursue in a monetary union with asymmetric monetary transmission and different rates of inflation? Should it base its decisions on the EU‐wide average of inflation and growth or should it instead focus on (appropriately weighted) national utility losses based on national rates of inflation and growth? We find that a policy which minimises the sum of national utility losses leads to higher average utility if the variability of common shocks is large relative to idiosyncratic demand shocks in the non‐tradables sectors. We draw conclusions for the appropriate weight of common and national objectives in the union
Economics · European monetary union · Inflation (cosmology · Inflation targeting · International economics · Macroeconomics · Monetary economics · Monetary policy · Fiscal Policies and Political Economy · Global Financial Crisis and Policies · Monetary Policy and Economic Impact
| Citation velocity | historical |
|---|---|
| Highly cited | No |