Academic Journal
Adjusting to the Euro
| العنوان: | Adjusting to the Euro |
|---|---|
| المؤلفون: | Gabriel Fagan, Vitor Gaspar, Vítor Gaspar |
| المساهمون: | The Pennsylvania State University CiteSeerX Archives |
| المصدر: | http://fordham.bepress.com/cgi/viewcontent.cgi?article%3D1000%26context%3Dcrif_seminar_series. |
| سنة النشر: | 2007 |
| المجموعة: | CiteSeerX |
| مصطلحات موضوعية: | euro area, interest rate convergence, overlapping generations model We are grateful to Marta Abreu, Chris Allsopp, Nuno Alves and an anonymous referee for useful |
| الوصف: | In this paper we argue that, for a group of converging economies of the European Union, participation in the euro area has been associated with easier access to financ-ing by domestic economic agents. Easier access to financing was a significant impulse leading to a sharp increase in households ' expenditures and a corresponding fall in the savings ratio. Increased expenditure was associated with current account deficits, a sharp fall in the net foreign asset position and an increase in the households ' indebt-edness. At the same time there was a sizeable increase in the real exchange rate. In this paper, we show that it is possible to obtain all these qualitative features of adjust-ment using a simple analytical model of intertemporal equilibrium. Specifically, we consider a simple endowment economy with traded and non-traded goods populated by Blanchard-Yaari households. We also argue that the consideration of external habit formation improves the model's ability to mimic short to medium term adjustment dynamics while, at the same time, improving the plausibility of steady state effects. JEL Classification: F36, E21, F32 |
| نوع الوثيقة: | text |
| اللغة: | English |
| Relation: | http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.687.5669; http://fordham.bepress.com/cgi/viewcontent.cgi?article%3D1000%26context%3Dcrif_seminar_series |
| الاتاحة: | http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.687.5669 http://fordham.bepress.com/cgi/viewcontent.cgi?article%3D1000%26context%3Dcrif_seminar_series |
| Rights: | Metadata may be used without restrictions as long as the oai identifier remains attached to it. |
| رقم الانضمام: | edsbas.5B140C1C |
| قاعدة البيانات: | BASE |
| الوصف غير متاح. |