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Matthias Weber
Title
Prof. Dr.
Last Name
Weber
First name
Matthias
Email
matthias.weber@unisg.ch
Phone
+41 71 224 70 76
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1 - 2 of 2
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PublicationThe Behavioral Economics of Currency Unions: Economic Integration and Monetary PolicyWe analyze different behavioral models of expectation formation in a multi-country New Keynesian currency union model. Our analyses yield the following robust results. First, economic integration is of crucial importance for the stability of the economic dynamics in a currency union. Second, when the economic dynamics are unstable, more activist monetary policy does not lead to stable economic dynamics. These findings have natural counterparts in the rational expectations version of the model: there, economic integration is crucial for the determinacy of the equilibrium and when the equilibrium is indeterminate, more activist monetary policy does not lead to a determinate equilibrium. In an application to euro area data, we find that the behavioral macroeconomic model outperforms its rational counterpart in terms of prediction performance.Type: journal articleJournal: Journal of Economic Dynamics and ControlVolume: Volume 112, March 2020, 103850
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PublicationDeglobalisation post COVID-19 could spell trouble for the European Monetary Union( 2020-07-01)
;Bertasiute, Akvile ;Massaro, DomenicoLess economic integration would make it difficult for the ECB to stabilise the euro area economies. Symmetric monetary policy cannot do anything about this and individual countries would need to use fiscal policy tools.Type: newspaper articleJournal: LSE Business Review