Article ID Journal Published Year Pages File Type
5062122 Economics Letters 2007 8 Pages PDF
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
, , ,