Strategic Interactions on Structural Reforms Between Integrated Economies: What Lessons for the EU? |
Etienne Lehmann, Emmanuelle Taugourdeau, |
University of Paris 2 - Panthéon-Assas University of Paris 1 - Panthéon-Sorbonne |
Copyright ©2004 The Journal of Economic Integration |
ABSTRACT |
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We show that the domestic output increases with a foreign country's structural reform and decreases with foreign country's fiscal policy. Hence, when governments act non-cooperatively, they implement too low structural reforms and too much fiscal policies. |
Keywords:
Coordination failures | Aggregate supply | Aggregate demand | Structural reforms
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REFERENCE |
1. |
Bean, C. (1998a) Monetary Policy under EMU, Oxford Review of Economic Policy, 14, 41-53. |
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2. |
Bean, C. (1998b) The Interaction of Aggregate Demand Policies and Labor Market Reform, Swedish Economic Policy Review, 5, 353-382. |
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