This book analyses economic interdependence in the Euro Area and provides estimates of the sign and size of economic spillovers and the impact of economic policy coordination concerning structural and budgetary policies on economic performance in the Euro Area. In the different chapters of the book, the following topics are studied: (i) the link between fiscal and monetary policies in the Euro Area; (ii) the link between public debt and long-term interest rates in the Euro Area; (iii) the link between budgetary stabilisation and the level of public debt in the Euro Area; (iv) the spillovers from structural reforms in the Euro Area, (v) the scope for the coordination of fiscal policies and of structural reforms in the Euro Area, and (vi) wage flexibility in the Euro Area.
1 Economic spillovers, structural reforms and policy coordination in the Euro Area: An overview by Klaus Weyerstrass and Koen Schoors and Bas van Aarle 1
2 Budgetary spillovers and short-term interest rates by Bas van Aarle 27
3 Budgetary spillovers and long-term interest rates by Peter Claeys 55
4 Budgetary stabilisation and the level of public debt by Niko Gobbin 107
5 Spillovers from economic reform by Klaus Weyerstrass and Johannes Jaenicke 129
6 Macroeconomic and welfare effects of structural and budgetary policies: spillovers in the MSG3 model by Reinhard Neck and Gottfried Haber 155
7 Have Europe's labour markets become more flexible? An exercise in measuring the relative flexibility of wages across countries and time by Andrew Hughes Hallett and Christian Richter and Xiaoshan Chen 203
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