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

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

doi:10.1016/j.econmod.2003.10.005

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

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

Economics, Finance and Entrepreneurship

Research output: Contribution to journal › Article › peer-review

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 language	English
Pages (from-to)	877–931
Number of pages	55
Journal	Economic Modelling
Volume	21
Issue number	5
Early online date	5 Feb 2004
DOIs	https://doi.org/10.1016/j.econmod.2003.10.005
Publication status	Published - Sept 2004
Event	EMU Macroeconomic Model Comparison excercise for the Euroconference - Bonn, Germany Duration: 7 Jun 2002 → 8 Jun 2002

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title = "Macroeconomic policy in Europe: experiments with monetary responses and fiscal impulses",

abstract = "In this paper we discuss the main model properties of NiGEM, the National Institute's large-scale macroeconometric model. NiGEM is a {\textquoteleft}New-Keynesian{\textquoteright} 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.",

author = "Ray Barrell and Bettina Becker and Joseph Byrne and Sylvia Gottschalk and Ian Hurst and {Van Welsum}, Desiree",

year = "2004",

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doi = "10.1016/j.econmod.2003.10.005",

language = "English",

volume = "21",

pages = "877–931",

journal = "Economic Modelling",

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note = "EMU Macroeconomic Model Comparison excercise for the Euroconference ; Conference date: 07-06-2002 Through 08-06-2002",

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TY - JOUR

T1 - Macroeconomic policy in Europe

T2 - EMU Macroeconomic Model Comparison excercise for the Euroconference

AU - Barrell, Ray

AU - Becker, Bettina

AU - Byrne, Joseph

AU - Gottschalk, Sylvia

AU - Hurst, Ian

AU - Van Welsum, Desiree

PY - 2004/9

Y1 - 2004/9

N2 - 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.

AB - 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.

UR - https://www.sciencedirect.com/science/article/pii/S0264999303000853?via%3Dihub

U2 - 10.1016/j.econmod.2003.10.005

DO - 10.1016/j.econmod.2003.10.005

M3 - Article

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EP - 931

JO - Economic Modelling

JF - Economic Modelling

IS - 5

Y2 - 7 June 2002 through 8 June 2002

ER -

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

Abstract

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