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On the Desirability of Coordinated Supply-side Intervention: Does a Monetary Union Matter? (in English)

Year & volume: 2004 (VOL. 54) Issue: 5 -6 Pages: 243-251
JEL classification: E61, E62, F42
Keywords: supply-side policies, policy coordination, monetary union
Abstract
This paper examines the desirability of coordinated supply-side intervention within a monetary union, given the constraints on monetary and fiscal policy. The author considers an economic framework featuring independent monetary policy. In general, coordinated intervention is most useful against shocks that require distinct policy responses in each separate economy.