Aggiustamento regionale, integrazione dei mercati finanziari e redistribuzione fiscale in un'unione monetaria

Abstract

The work extends the Mundell-Fleming model to a regional context in conditions of uncertainty and imbalance, thus making necessary changes to the basic structure of the original model. The necessity of such an expansion stems from several reasons. First, the new model allows to analyse the static and dynamic effects of asymmetric shocks of a stochastic or systematic character that affect a small region of a currency area. Second, at the level of regional economics there is still a lack of a theoretical model capable of synthesising the effects of monetary and fiscal policies in a context of tight interdependence between the financial sector, public sector and the real sector. Finally, within the sphere of regional economics there is a clear dividing line between short-term and long-term analysis. Aggregate demand policies can generate radically different effects in the long run as opposed to the short-run, regardless of the changes induced by the supply side. The author illustrates the main features that differentiate the model presented with the traditional Mundell-Fleming model. Then, the structure of the model is presented in formal terms and an analysis is performed of stochastic asymmetric shocks of a monetary and real nature that affect a small regional economy. Finally, the impact effects and the long-term dynamic effects of permanent shocks are analysed. JEL Codes: F36 Keywords: Mundell-Fleming model, asymmetric shocks, regional economics