Domestic Adjustment Policies and External Economic Shocks |
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Authors: | Séverine Menguy |
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Affiliation: | 1. EconomiX, Bureau K123 , Université de Paris X-Nanterre , France severine.menguy@orange.fr |
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Abstract: | We study the consequences of the entry of a structurally heterogeneous country on the well-being of the current members of a monetary union. Welfare would be increased if the new country is more open, if it has a smaller sensibility of its demand to the interest rate, and also generally if its supply function has a lower sensibility to inflation. |
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Keywords: | Euro-area enlargement monetary policy fiscal policy structural heterogeneity |
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