Working Paper: CEPR ID: DP423
Authors: George S. Alogoskoufis
Abstract: 3
Keywords: fiscal policies; european monetary union; relative shocks
JEL Codes: 430
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| relative demand shock (E39) | efficiency of non-cooperative fiscal policies (H39) |
| relative demand shock (E39) | efficiency of cooperative fiscal policies (H39) |
| productivity shock (O49) | efficiency of decentralized fiscal policies (H77) |
| bounded relative productivity shock (O49) | cooperative outcome (C71) |
| unbounded productivity shock (O49) | suboptimal Cournot-Nash equilibrium (C72) |
| costs of adjusting fiscal stance (E63) | suboptimal responses to demand shocks (E39) |
| costs of adjusting fiscal stance (E63) | suboptimal responses to productivity shocks (O49) |
| large shocks (E32) | breakdown of reputational mechanisms (L14) |
| breakdown of reputational mechanisms (L14) | need for central control of fiscal policies (O23) |