Replication data for: Welfare Reversals in a Monetary Union
Principal Investigator(s): View help for Principal Investigator(s) Stéphane Auray; Aurélien Eyquem
Version: View help for Version V1
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LICENSE.txt | text/plain | 14.6 KB | 10/12/2019 06:05:PM |
Project Citation:
Auray, Stéphane, and Eyquem, Aurélien. Replication data for: Welfare Reversals in a Monetary Union. Nashville, TN: American Economic Association [publisher], 2014. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E114308V1
Project Description
Summary:
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We show that welfare can be lower under complete financial markets
than under autarky in a monetary union with home bias, sticky prices,
and asymmetric shocks. Such a monetary union is a second-
best environment in which the structure of financial markets affects
risk-sharing but also shapes the dynamics of inflation rates and the
welfare costs from nominal rigidities. Welfare reversals arise for a
variety of empirically plausible degrees of price stickiness when the Marshall-Lerner condition is met. These results carry over a model
with active fiscal policies, and hold within a medium-scale model,
although to a weaker extent.
Scope of Project
Subject Terms:
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Model Simulations;
Matlab Codes;
Dynare Codes
JEL Classification:
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E31 Price Level; Inflation; Deflation
E52 Monetary Policy
E62 Fiscal Policy
F33 International Monetary Arrangements and Institutions
F41 Open Economy Macroeconomics
E31 Price Level; Inflation; Deflation
E52 Monetary Policy
E62 Fiscal Policy
F33 International Monetary Arrangements and Institutions
F41 Open Economy Macroeconomics
Data Type(s):
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program source code
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