Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5062122 | Economics Letters | 2007 | 8 Pages |
Abstract
In monetary unions time-inconsistency provides the rationale for monetary conservativeness and against fiscal coordination. However, this depends on the assumption of exogenous labor markets. Once wage-setting behavior is explicitly modeled, fiscal coordination and less conservative central bankers improve the performance.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Nicola Acocella, Giovanni Di Bartolomeo, Patrizio Tirelli,