Theoretical and Applied Economics
No. 6 / 2006 (501)
Adjusting Shocks Management in Euro Zone. The Asymmetrical Impact of the ECB Monetary Policy
Academia de Studii Economice Bucuresti
Abstract. The loss of the sovereign interest rate and exchange rate instruments is the main potential cost of joining a monetary union since it becomes more difficult to adjust swiftly to shocks. In the case of demand shocks that affect all countries more or less equally (symmetric shocks), the loss of monetary autonomy implied by EMU is in principle of less concern, because the area-wide policy would tend to deliver monetary conditions that are appropriate for each country. However, this may not always be the case if the transmission mechanism operates significantly differently in the euro area, because then a uniform policy response would not yield uniform effects. In the case of supply shocks – whether country specificor- area-wide – lasting changes in relative prices and production patterns are needed.
Keywords: asymmetric shocks; output-gap; monetary policy; Taylor rule; the fiscal-monetary policy mix.
Contents
- Synthetic Analysis about Single-Criterion and Multi-Criterion Financial Assets Portfolio
Leonardo Badea
-
About Knowledge Society Pillars in Romania
Ion Gh. Rosca
- Adjusting Shocks
Management in Euro Zone. The Asymmetrical Impact
of the ECB Monetary Policy
Marius-Corneliu Marinas
-
Banking Activity for Sustainable Development
Alexandra Eremia
Ion Stancu
- Engineering and Re-engineering Model of the Proceses for Implementing Quality Management System in Small and Medium Enterprises
Ion Ionita
Cosmin Dobrin
Mihai Mieila
- Economics of Corruption. The Equilibrium, Political and Social Determinations
Ani Matei
Lucica Matei
- Controversies Regarding Goodwill Evaluation, Depreciation and Recording Policies
Niculae Feleaga
Liliana Feleaga
-
TRIPs Agreement, Important Multilateral WTO Treaty
Oana-Maria Florescu
-
Cultural Impacts in Managerial Accounting
Flavius Guinea
- Some
Aspects Regarding Banking Risk Management
Lavinia Vasile
- Human Development – Qualitative Dimensions
of a Globalized World
Petru Stefea
Marilen Pirtea
- Trends in Banking System Globalization
Emanuela Mihaela Savu
-
Migration Process Evolution in Europe
Carmen Tudorache