Economic Policy in a Monetary Union

Focusing on macroeconomic policy within a monetary union, the book examines the roles of the central bank, national governments, and trade unions, highlighting the impact of wage shocks and wage restraint. It presents a range of models—from basic to advanced—and includes numerical estimations of policy multipliers, supported by numerous diagrams. The analysis considers the dynamics of an open economy with high capital mobility and varying characteristics among union countries, addressing fiscal policy as a foundational aspect of the monetary union.