Economics and Business Review

ISSN 2392-1641
e-ISSN 2450-0097

Poznań University of Economics - Poland

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Volume 12 Number 4 pp. 28-50

Micha&#322, Konopczy&#324,ski

Pozna&#
3

2

4
; University of Economics, Poland

Short and medium run effects of fiscal policy in an economic and monetary union : the case of a small country

Abstract: We analyze the effectiveness of fiscal policy in an economic and monetary union. On the basis of a simple static and dynamic Mundell-Fleming model, we show that expansionary fiscal policy is very effective in the short run, but in the medium run all positive effects are "exported" abroad due to impaired competitiveness. These results are illustrated by numerical simulations. High short-run effectiveness of fiscal policy may have contributed to excessive deficits in many EMU countries. (original abstract)
pub/2012_4_28.pdf Full text available in in Adobe Acrobat format:
http://www.ebr.edu.pl/volume12/issue4/2012_4_28.pdf
Keywords: Currency unions, Economic models, Competition, Budget deficit, Financial crisis, Unie walutowe, Modele ekonomiczne, Konkurencja, Deficyt budżetowy, Kryzys finansowy

For citation:

MLA Konopczy&#ski, Micha&#. "Short and medium run effects of fiscal policy in an economic and monetary union : the case of a small country." Economics and Business Review EBR 12.4 (): 28-50.
APA , (). Short and medium run effects of fiscal policy in an economic and monetary union : the case of a small country. Economics and Business Review EBR 12(4), 28-50
ISO 690 KONOPCZY&#SKI, Micha&#. Short and medium run effects of fiscal policy in an economic and monetary union : the case of a small country. Economics and Business Review EBR, , 12.4: 28-50.