An Economic Analysis of
Monetary Union
2001. XV, 255 pp. 21 figs.,
22 tabs. Hardcover
This book explores the new economics of monetary union. It carefully discusses the effects
of shocks and policies on output and prices. Shocks and policies are country-specific or
common. They occur on the demand or supply side. Countries can differ in behavioural
functions. Wages can be fixed, flexible, or slow. In addition, fixed wages and flexible
wages can coexist. Take for instance fixed wages in Germany and flexible wages in France.
Or take fixed wages in Europe and flexible wages in America. A special feature of this
book is the numerical estimation of shock and policy multipliers. Further topics are
inflation and disinflation. Take for instance inflation in Germany and price stability in
France. Then what policy is needed for disinflation in the union? And what will be the
dynamic effects on Germany and France?
Contents: The Small Union as
a Whole: Fixed Money Wages.- Flexible Money Wages.- Slow Money Wages.- The Small Union of
Two Countries: Fixed Money Wages.- Flexible Money Wages.- Fixed Money Wages in Germany,
Flexible Money Wages in France.- Slow Money Wages.- Different Behavioural Functions.- The
World as a Whole: Fixed Money Wages.- Flexible Money Wages.- The World of Two Regions:
Fixed Money Wages.- Flexible Money Wages.- Fixed Money Wages in Europe, Flexible Money
Wages in America.