U.S. and Euro Area Monetary and Fiscal Interactions During the Pandemic: A Structural Analysis

Abstract

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Shared Problem, Shared Solution: Benefits from Fiscal-Monetary Interactions in the Euro Area

“…At the same time, during the past few years, both policies have moved at exceptional speed to provide support when needed. The transmission has also been faster with a potentially steeper Phillips Curve (Hodge et al 2022). As a result, the timing mismatch is less of a concern for the purposes of FMI.…”