Abstract
1) The static model. The world economy consists of two monetary regions, say Europe and America. The monetary regions are the same size and have the same behavioural functions. This chapter is based on target system B. The targets of the European central bank are zero inflation and zero unemployment in Europe. The targets of the American central bank are zero inflation and zero unemployment in America. The target of the European government is zero unemployment in Europe. And the target of the American government is zero unemployment in America.
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© 2012 Springer-Verlag Berlin Heidelberg
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Carlberg, M. (2012). Chapter 2 Monetary and Fiscal Interaction: Case B. In: Unemployment and Inflation in Economic Crises. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-28018-4_13
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DOI: https://doi.org/10.1007/978-3-642-28018-4_13
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Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-28017-7
Online ISBN: 978-3-642-28018-4
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