Series: IMF Working Papers
Author(s): Philipp Engler , Giovanni Ganelli , Juha Tervala , and Simon Voigts
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 30 October 2014
Keywords: currency union, devaluation, consumption, gdp, exchange, trade balance, Open Economy Macroeconomics,
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....