'Optimal' Stabilization Policies for Europe: Some Simulation Results

摘要

Optimal economic reactions of European policy-makers on exogenous shocks are determined by simulating a global macroeconomic model under different institutional arrangements. In particular, it is investigated whether discretionary or rulebasedpolicies and whether non-cooperative or cooperative policies for Europe result in a better performance as measured by intertemporal objective functions. The results show that the answers to these questions depend strongly on the nature of the shock towhich European economies are exposed.