Monetary Integration and Economic Reform
AbstractRecent research in contract theory views ownership as a substitute for complete contracts. Here, this approach is applied to monetary integration. Countries face a coordination problem conducting monetary policy. Negative spillovers ensure uncoordinated policy generates too high inflation. Ex ante, policymakers can undertake politically costly economic reform. This has a positive spillover because it improves the outcome of the monetary policy game. Ex post contracting over policy may be possible but it supposed that ex ante contracting over reform and monetary policy is not. This paper analyzes when monetary union is a good substitute for this inability to commit.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Royal Economic Society in its journal The Economic Journal.
Volume (Year): 109 (1999)
Issue (Month): 452 (January)
Contact details of provider:
Postal: Office of the Secretary-General, School of Economics and Finance, University of St. Andrews, St. Andrews, Fife, KY16 9AL, UK
Phone: +44 1334 462479
Web page: http://www.res.org.uk/
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Roel M. W. J. Beetsma & Xavier Debrun, 2005.
"Implementing the Stability and Growth Pact: Enforcement and Procedural Flexibility,"
IMF Working Papers
05/59, International Monetary Fund.
- Beetsma, Roel & Debrun, Xavier, 2005. "Implementing the stability and growth pact: enforcement and procedural flexibility," Working Paper Series 0433, European Central Bank.
- Beetsma, Roel & Debrun, Xavier, 2005. "Implementing the Stability and Growth Pact: Enforcement and Procedural Flexibility," CEPR Discussion Papers 5005, C.E.P.R. Discussion Papers.
- Alex Cukierman & Alberto Dalmazzo, 2006.
"Fiscal-monetary policy interactions in the presence of unionized labor markets,"
International Tax and Public Finance,
Springer, vol. 13(4), pages 411-435, August.
- Cukierman, Alex & Dalmazzo, Alberto, 2005. "Fiscal-Monetary Policy Interactions in the Presence of Unionized Labour Markets," CEPR Discussion Papers 5282, C.E.P.R. Discussion Papers.
- Holod, Dmytro & Reed, Robert III, 2004. "Regional spillovers, economic growth, and the effects of economic integration," Economics Letters, Elsevier, vol. 85(1), pages 35-42, October.
- Robert Franzese, 2001. "Strategic Interactions of Monetary Policymakers and Wage/Price Bargainers: A Review with Implications for the European Common-Currency Area," Empirica, Springer, vol. 28(4), pages 457-486, December.
- Frank Barry, 2001. "Regional Characteristics, Monetary Union and Regional Income Volatility," Working Papers 200111, School Of Economics, University College Dublin.
- Carsten Hefeker, 2000.
"Structural Reforms and the Enlargement of Monetary Union,"
CESifo Working Paper Series
270, CESifo Group Munich.
- Carsten Hefeker, 2003. "Structural Reforms and the Enlargement of Monetary Union," CESifo Working Paper Series 1057, CESifo Group Munich.
- Alho, Kari E.O., 2006. "Structural Reforms in the EU and Political Myopia in Economic Policies," Discussion Papers 1050, The Research Institute of the Finnish Economy.
- Hughes Hallett, Andrew & Jensen, Svend E. Hougaard, 2001. "Currency unions and the incentive to reform: are market mechanisms enough?," The North American Journal of Economics and Finance, Elsevier, vol. 12(2), pages 139-155, July.
- Acocella Nicola & Di Bartolomeo Giovanni & Tirelli Patrizio, 2007.
"The macroeconomics of social pacts,"
0028, Department of Communication, University of Teramo.
- Sibert, Anne & Sutherland, Alan, 2000. "Monetary union and labor market reform," Journal of International Economics, Elsevier, vol. 51(2), pages 421-435, August.
- Focco W. Vijselaar, 2000. "Macroeconomic Policy Co-ordination in the Euro Area," MEB Series (discontinued) 2000-5, Netherlands Central Bank, Monetary and Economic Policy Department.
- Andrew Hughes Hallett & Diana N. Weymark, 2001.
"The Cost of Heterogeneity in a Monetary Union,"
Vanderbilt University Department of Economics Working Papers
0128, Vanderbilt University Department of Economics.
- Beetsma, Roel M.W.J. & Debrun, Xavier, 2007. "The new stability and growth pact: A first assessment," European Economic Review, Elsevier, vol. 51(2), pages 453-477, February.
- Hughes Hallett, Andrew & Viegi, Nicola, 2001. "Labour Market Reform and Monetary Policy in EMU: Do Asymmetries Matter?," CEPR Discussion Papers 2979, C.E.P.R. Discussion Papers.
- Bokan, Nikola & Hughes Hallett, Andrew, 2006.
"Labour and Product Market Reforms in the Economy with Distortionary Taxation,"
CEPR Discussion Papers
5431, C.E.P.R. Discussion Papers.
- Nikola Bokan & Andrew Hughes Hallett, 2006. "Labour and Product Market Reforms in the Economy with Distortionary Taxation," CDMA Working Paper Series 200604, Centre for Dynamic Macroeconomic Analysis.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.