Fiscal Stabilisation in the EMU

  title={Fiscal Stabilisation in the EMU},
  author={Harry Garretsen},
This paper analyses the effects of macroeconomic shocks in a monetary union with the aid of a two-country model of the EMU. Our analysis serves two purposes. First, we show how asymmetries between countries might matter in terms of the resulting business cycle fluctuations. More specifically, we do not only allow for country-specific shocks but also for… CONTINUE READING