Macroeconomic Effects of EU Transfers in New Member States

September 1, 2008

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Format: Chicago

Macroeconomic Effects of EU Transfers in New Member States, (USA: International Monetary Fund, 2008) accessed November 22, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Large inflows from the European Union to the New Member States are likely to significantlyimpact macroeconomic outcomes. In this paper, we use the IMF's Global Integrated Monetaryand Fiscal model (GIMF) to analyze the impact of the transfers and show the conditionsunder which they would help speed up convergence. We find that the EU funds need to bedirected predominantly to investment rather than to income support and that to bestaccompany the EU fund inflows, the policy-mix would need to combine counter-cyclicalpolicy with a strong commitment to the existing monetary regime.

Subject: Consumption, Fiscal policy, Income, Public investment spending, Real exchange rates

Keywords: EU fund, EU transfer, Income support, Inflow rate, Recipient country, WP

Publication Details

Pages:

57
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2008/223
Stock No:

WPIEA2008223
ISBN:

9781451870817
ISSN:

1018-5941

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