Arce, ÓscarHurtado, SamuelThomas, Carlos2016-05-302016-05-302016-05http://hdl.handle.net/10230/26780We provide a general equilibrium framework for analyzing the effects of supply and demand side policies, and the potential synergies between them, in an asymmetric monetary union that faces a liquidity trap and a slow deleveraging process in its ‘periphery’. We find that the joint implementation of pro-competition structural reforms in the periphery, a fiscal expansion in the ‘core’, and forward guidance about the three policies: forward guidance re-inforces the expansionary effects of country-specific policies, and the latter in turn improve the effectiveness of forward guidance.application/pdfengThis is an Open Access article distributed under the terms of the Creative Commons Attribution License Creative Commons Attribution 4.0 International, which permits unrestricted use, distribution and reproduction in any medium provided that the original work is properlyattributed.info:eu-repo/semantics/workingPaperMonetary unionDeleveragingZero lower boundStructural re-formsFiscal expansionForward guidanceSynergiesinfo:eu-repo/semantics/openAccess