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2014-01-27Buch DOI: 10.18452/4498
Fiscal Devaluation in a Monetary Union
dc.contributor.authorEngler, Philipp
dc.contributor.authorGanelli, Giovanni
dc.contributor.authorTervala, Juha
dc.contributor.authorVoigts, Simon
dc.date.accessioned2017-06-16T00:57:57Z
dc.date.available2017-06-16T00:57:57Z
dc.date.created2014-06-19
dc.date.issued2014-01-27
dc.date.submitted2014-01-27
dc.identifier.issn1860-5664
dc.identifier.urihttp://edoc.hu-berlin.de/18452/5150
dc.description.abstractBetween 1999 and the onset of the economic crisis in 2008 real ex-change rates in Greece, Ireland, Italy, Portugal and Spain appreciated relative to the rest of the euro area. This divergence in competitiveness was reflected in the emergence of current account imbalances. Given that exchange rate devaluations are no longer available in a monetary union, one potential way to address such imbalances is through a fiscal devaluation. We use a DSGE model calibrated to the euro area to investigate the impact of a fiscal devaluation, modeled as a revenue-neutral shift from employers' social contributions to the Value Added Tax. We find that a fiscal devaluation carried out in 'Southern European countries' has a strong positive effect on output, but a mild effect on the trade balance of these countries. In addition, the negative effect on 'Central-Northern countries' output is weak.eng
dc.language.isoeng
dc.publisherHumboldt-Universität zu Berlin, Wirtschaftswissenschaftliche Fakultät
dc.subjectFiscal Policyeng
dc.subjecteuro areaeng
dc.subjectFiscal Devaluationeng
dc.subjectcurrency unioneng
dc.subjectcurrent accounteng
dc.subject.ddc310 Statistik
dc.subject.ddc330 Wirtschaft
dc.titleFiscal Devaluation in a Monetary Union
dc.typebook
dc.identifier.urnurn:nbn:de:kobv:11-100218104
dc.identifier.doihttp://dx.doi.org/10.18452/4498
local.edoc.container-titleSonderforschungsbereich 649: Ökonomisches Risiko
local.edoc.pages30
local.edoc.type-nameBuch
local.edoc.container-typeseries
local.edoc.container-type-nameSchriftenreihe
local.edoc.container-volume2014
local.edoc.container-issue11
local.edoc.container-year2014
local.edoc.container-erstkatid2195055-6

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