Implications of Monetary Union for Catching-up Member States
نویسنده
چکیده
4 Non-technical summary 5 7 2 10 2.1 Sectors and aggregation 10 2.2 Relative prices 11 2.3 Real exchange rate and sectoral productivity shocks 12 2.4 Nominal rigidity and aggregate supply 14 3 Autonomous monetary policy 15 4 The currency union 17 4.1 Determination of union-wide output and prices 18 4.2 Currency union’s welfare 19 4.3 Reference member state’s welfare 20 5 Relative performance and sensitivity analysis 21 5.1 Benchmark parameter values 22 5.2 Sensitivity analysis 22 6 Concluding remarks 26 Appendix: Solving for domestic output and prices under the currency union 29 References 31 Figures 35 European Central Bank Working Paper Series 39 A simple model
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