Year: 2001
Type: book-chapter
Abstract: This chapter asks whether fiscal transfers within the monetary union can be designed to stabilize employment or consumption following an asymmetric productivity shock. It considers how transfer schemes affect welfare under monetary union in a dynamic general equilibrium with optimizing households and firms and nominal wage rigidities. First, it presents a model of monetary union whose regions are affected by asymmetric shocks. It then analyses the properties of an interregional transfer system channeling demand from regions enjoying a positive shock to regions suffering from a negative shock.
Source: Oxford University Press eBooks
Authors: Kenneth Kletzer, Jürgen Von Hagen
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1541002495