Economic spillover and policy coordination in the Euro area - Gottfried Haber, Bas van Aarle, Koen Schoors, Niko Gobbin and Peter Claeys
Author(s): Klaus Weyerstrass, Johannes Jaenicke, Reinhard Neck, Gottfried Haber (Institute for Advanced Studies, Carinthia)
and Bas van Aarle, Koen Schoors, Niko Gobbin, Peter Claeys (Gent University)
Economic spillover and policy coordination in the Euro area - Gottfried Haber, Bas van Aarle, Koen Schoors, Niko Gobbin and Peter Claeys (7 MB)
There is a broad consensus among economists that the increased interdependence that comes from sharing a common currency and a single monetary policy justifies some degree of economic policy coordination between euro area Member States. However, empirical studies have, thus far, offered inconclusive evidence regarding the comparative importance of
different types of economic spillover. Accordingly, estimates of the welfare gains from economic policy coordination in the euro area have varied considerably.
This study presents original research on the nature of economic interdependence under European Economic and Monetary Union. Its main contribution is to provide plausible estimates of the sign and size of economic spillover in the euro area and the welfare gains from economic policy coordination. These results are relevant for the European Commission’s ongoing work on strengthening economic governance in the context of the Stability and Growth Pact and the Lisbon Strategy.
(European Economy. Economic Papers 246. March 2006.
Brussels. 289pp. Tab. Free.)
|ISBN 92-79-01187-1 (online)||
|ISSN 1725-3187 (online)