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Titlebook: Strategic Policy Interactions in a Monetary Union; Michael Carlberg Book 2009 Springer-Verlag Berlin Heidelberg 2009 EU.European Monetary

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Cooperation between Central Bank and Governmentcal policy multiplier with respect to inflation, A is some other factors bearing on the rate of unemployment in Europe, and B is some other factors bearing on the rate of inflation in Europe. The endogenous variables are the rate of unemployment and the rate of inflation in Europe.
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Fiscal Policy Ben the first-order condition for a minimum loss is:.Here G is the optimum level of European government purchases. An increase in A requires an increase in European government purchases. And an increase in B requires a cut in European government purchases. From equations (1) and (6) follows the optim
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Interaction between Central Bank and Government Bnction. Taking account of equations (1) and (2), the loss function of the European central bank can be written as follows:.Then the first-order condition for a minimum loss gives the reaction function of the European central bank:.Suppose the European government raises European government purchases.
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Cooperation between Central Bank and Government-order conditions for a minimum loss are:.Equation (6) shows the first-order condition with respect to European money supply. And equation (7) shows the first-order condition with respect to European government purchases.
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Book 2009of this project were presented at the World Congress of the International Economic Association, at the International Conference on Macroeconomic Analysis, at the International Institute of Public Finance, and at the International Atlantic Economic Conference. Other parts were presented at the Macro
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