Macroeconomic policy in Europe: experiments with monetary responses and fiscal impulses

Ray Barrell*, Bettina Becker, Joseph Byrne, Sylvia Gottschalk, Ian Hurst, Desirée van Welsum

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

19 Citations (Scopus)

Abstract

In this paper we discuss the main model properties of NiGEM, the National Institute's large-scale macroeconometric model. NiGEM is a 'New-Keynesian' model where agents display forward-looking behaviour but there are nominal rigidities slowing adjustment. In a number of policy simulations we find there are strong similarities across countries. Nevertheless, Euro Area responses to monetary and fiscal policy are greatest in Germany in NiGEM, whilst these responses are slower in comparison to the US due to greater wage-price inertia.

Original languageEnglish
Pages (from-to)877-931
Number of pages55
JournalEconomic Modelling
Volume21
Issue number5
Early online date5 Feb 2004
DOIs
Publication statusPublished - 30 Sept 2004
Externally publishedYes

Keywords

  • EMU
  • macroeconomic modelling
  • policy analysis

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