Join us in our upcoming Applied Economics Seminar at the Graduate Center organized by Professor Agbeyegbe, Hunter College & Graduate Center.
A lecture by:
Patricia Gomez-Gonzalez, Fordham University
“Same Spain, Less Pain?” (joint work with Daniel M. Rees Federal Reserve Bank of Australia)
We explore how the Spanish economy would have performed in the aftermath of the 2008 financial crisis if it had retained an independent monetary policy rather than joining the euro. A novel aspect of our approach is that we set up and estimate a structural model that takes account of the break in the conduct of monetary policy that occurred when Spain joined the euro, including anticipation effects. On average, Spanish economic growth would have been around 1.5 percentage points higher and consumption growth 0.5 percentage points higher between 2008 and 2014 if Spain had retained an independent monetary policy. But because euro entry led to a large boom prior to the crisis, the level of economic activity would have been similar by late 2014, regardless of Spain’s monetary arrangements.
Paper available here.
Date: Tuesday, February 28, 2017
Location: 365 Fifth Avenue, New York, NY
Travel Directions to The Graduate Center:
By Subway: B, D, F, N, R, or Q to 34th Street-Herald Square; walk east to 5th Avenue 6 to 33rd Street.
By Bus: M1, M2, M3, M4, M5, M6, M7, M16, M34, Q32.