Type: Working Paper
Monetary Politics in a Monetary Union: A Note on Common Agency with Rational Expectations
Working Paper, EUI RSCAS, 2007/21
RUTA, Michele, Monetary Politics in a Monetary Union: A Note on Common Agency with Rational Expectations, EUI RSCAS, 2007/21 - http://hdl.handle.net/1814/7084
Retrieved from Cadmus, EUI Research Repository
Is the politicisation of monetary policy in a currency union desirable? This paper shows that in a setting where political influence by national governments is modeled as a common agency game with rational expectations, the answer to this question crucially depends on whether the common central bank can commit to follow its policy.
Cadmus permanent link: http://hdl.handle.net/1814/7084
Series/Number: EUI RSCAS; 2007/21