FISCAL AND MONETARY DETERMINANTS OF THE EURO AREA’S GROWTH AND CYCLICAL RECURRENCE

Petar Yurukov

Abstract

The objective of this article is to study the opportunities for managing economic growth and business cycle in the Economic and Monetary Union. The fiscal and monetary determinants of growth and cyclical recurrence in the Euro Area, their size and impact direction have been identified by a vector autoregression. Recommendations have been made on macroeconomic policies, which stimulate growth and smooth out cyclical fluctuations in the Euro area.

Keywords: Euro area, economic growth, business cycle, fiscal policy, monetary policy, vector autoregression

JEL Codes: E32, E52, E62, F43, 047

FISCAL AND MONETARY DETERMINANTS OF THE EURO AREA’S GROWTH AND CYCLICAL RECURRENCE

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

References

Eurostat http://ec.europa.eu/eurostat.
Franks, J., Barkbu, B., Blavy, R., Oman, W. and Schoelermann, H. (2018). Economic Convergence in the Euro Area: Coming Together or Drifting Apart? IMF Working Paper WP/18/10.
Hein, E. and Detzer, D. (2015). Post-Keynesian Alternative Policies to Curb Macroeconomic Imbalances in the Euro Area. PANOECONOMICUS, 2015, Vol. 62, Issue 2 (Special Issue), pp. 217-236.
Jarociński, M. and Maćkowiak, B. (2017). Monetary-fiscal interactions and the euro area’s vulnerability. ECB RESEARCH BULLETIN NO. 36.
Kamps, C. (2017). Reflections on the euro area fiscal stance. CEPS workshop, Brussels, 20 April 2017.
Mooslechner, P. (2017). Economic and Monetary Policy Perspectives for Europe and the Euro Area. OesterreichischeNationalbank. Roundtable Discussion, Austrian Consulate General New York City, November 8, 2017.
Neck, R. and Haber, G. (2007). On the macroeconomics of Euro Area enlargement. Part of the research project no. 12166, financially supported by the Jubilaeumsfonds of the Austrian National Bank.
OECD (2014). Economic challenges and policy recommendations for the euro area. OECD “Better Policies”, Series February 2014.
Orphanides, A. (2017). The Fiscal-Monetary Policy Mix in the Euro Area: Challenges at the Zero Lower Bound. European Commission Discussion Paper 060.
Vijselaar, F. W. (2000). Macroeconomic Policy Co-ordination in the Euro Area. MEB Series (discontinued) 2000-5, Netherlands Central Bank, Monetary and Economic Policy Department.

References

Eurostat http://ec.europa.eu/eurostat.

Franks, J., Barkbu, B., Blavy, R., Oman, W. and Schoelermann, H. (2018). Economic Convergence in the Euro Area: Coming Together or Drifting Apart? IMF Working Paper WP/18/10.

Hein, E. and Detzer, D. (2015). Post-Keynesian Alternative Policies to Curb Macroeconomic Imbalances in the Euro Area. PANOECONOMICUS, 2015, Vol. 62, Issue 2 (Special Issue), pp. 217-236.

Jarociński, M. and Maćkowiak, B. (2017). Monetary-fiscal interactions and the euro area’s vulnerability. ECB RESEARCH BULLETIN NO. 36.

Kamps, C. (2017). Reflections on the euro area fiscal stance. CEPS workshop, Brussels, 20 April 2017.

Mooslechner, P. (2017). Economic and Monetary Policy Perspectives for Europe and the Euro Area. OesterreichischeNationalbank. Roundtable Discussion, Austrian Consulate General New York City, November 8, 2017.

Neck, R. and Haber, G. (2007). On the macroeconomics of Euro Area enlargement. Part of the research project no. 12166, financially supported by the Jubilaeumsfonds of the Austrian National Bank.

OECD (2014). Economic challenges and policy recommendations for the euro area. OECD “Better Policies”, Series February 2014.

Orphanides, A. (2017). The Fiscal-Monetary Policy Mix in the Euro Area: Challenges at the Zero Lower Bound. European Commission Discussion Paper 060.

Vijselaar, F. W. (2000). Macroeconomic Policy Co-ordination in the Euro Area. MEB Series (discontinued) 2000-5, Netherlands Central Bank, Monetary and Economic Policy Department.