This book explores the new economics of monetary union. It carefully discussesthe effects of shocks and policies on output and prices. Shocks and policiesare co... » 

This book explores the new economics of monetary union. It carefully discussesthe effects of shocks and policies on output and prices. Shocks and policiesare countryspecific or common. They occur on the demand or supply side.Countries can differ in behavioural functions. Wages can be fixed flexible orslow. In addition fixed wages and flexible wages can coexist. Take forinstance fixed wages in Germany and flexible wages in France. Or take fixedwages in Europe and flexible wages in America. A special feature of this bookis the numerical estimation of shock and policy multipliers. Further topics areinflation and disinflation. Take for instance inflation in Germany and pricestability in France. Then what policy is needed for disinflation in the union?And what will be the dynamic effects on Germany and France? TOCBThe SmallUnion as a WholeB Fixed Money Wages. Flexible Money Wages. Slow MoneyWages. BThe Small Union of TwoB BCountriesB Fixed Money Wages. FlexibleMoney Wages. Fixed Money Wages in Germany Flexible Money Wages in France.Slow Money Wages. Different Behavioural Functions. BThe World asB Ba WholeB Fixed Money Wages. Flexible Money Wages. BThe B BWorld of Two RegionsB Fixed Money Wages. Flexible Money Wages. Fixed Money Wages in EuropeFlexible Money Wages in America. «