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

Ray Barrell, Bettina Becker, Joseph Byrne, Sylvia Gottschalk, Ian Hurst, Desiree Van Welsum

Research output: Contribution to journalArticle

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 - Sep 2004
EventEMU Macroeconomic Model Comparison excercise for the Euroconference - Bonn, Germany
Duration: 7 Jun 20028 Jun 2002

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