Fiscal Devaluation in a Monetary Union /

Using a DSGE model calibrated to the euro area, we analyze the international effects of a fiscal devaluation (FD) implemented as a revenue-neutral shift from employer's social contributions to the Value Added Tax. We find that a FD in 'Southern European countries' has a strong positiv...

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Bibliographic Details
Main Author: Engler, Philipp
Other Authors: Ganelli, Giovanni, Tervala, Juha, Voigts, Simon
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2014.
Series:IMF Working Papers; Working Paper ; No. 2014/201
Online Access:Full text available on IMF