On the Coordination of National Fiscal Policies in a Monetary Union - Il coordinamento delle politiche fiscali nazionali in un’unione monetaria
AbstractIn this paper we analyze the issue of cooperation among national fiscal authorities in a monetary union within the framework of their strategic interactions with the common monetary authority. We find that: a) in the lack of cooperation with the central bank, cooperation among fiscal authorities is not desirable; b) if the authorities have different targets, both fiscal leadership and monetary leadership result in a Pareto improvement with respect to the Nash outcome; however, the central bank is better off acting as a follower rather than as a leader; c) harmonization of targets makes policy coordination unnecessary, unless countries are hit by asymmetric shocks: in this case,either cooperation among national fiscal authorities or state-contingency of targets are necessary to obtain an efficient outcome. These findings are applied to the EMU case. - In questo lavoro analizziamo il problema della cooperazione tra autorità fiscali nazionali in un’unione monetaria nell’ambito delle relazioni strategiche con l’autorità monetaria comune. Troviamo che: a) in mancanza di cooperazione con la banca centrale, la cooperazione tra le autorità fiscali non è desiderabile; b) se le autorità hanno target diversi, sia la leadership fiscale, sia la leadership monetaria comportano un miglioramento paretiano rispetto all’equilibrio di Nash; tuttavia, la banca centrale è in una situazione migliore se agisce da follower piuttosto che da leader; c) l’armonizzazione dei target rende superfluo il coordinamento, a meno che i paesi membri dell’unione siano colpiti da shock asimmetrici: in tal caso, diventano necessari per ottenere un risultato efficiente o la cooperazione tra autorità fiscali nazionali o target state contingent. Questi risultati sono applicati al caso europeo.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by Camera di Commercio di Genova in its journal Economia Internazionale / International Economics.
Volume (Year): 63 (2010)
Issue (Month): 3 ()
Contact details of provider:
Postal: Via Garibaldi 4, 16124 Genova, Italy
Phone: +39 010 27041
Fax: +39 010 2704222
Web page: http://www.ge.camcom.it/IT/Tool/Modulistica
More information through EDIRC
Fiscal and Monetary Policy Coordination; Monetary Union; International Fiscal Issues;
Find related papers by JEL classification:
- E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
- F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
- H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Pompeo Posta & Valeria Bonis, 2009. "Strategic Interactions Among Central Bank and National Fiscal Authorities in a Monetary Union Subject to Asymmetric Country Shocks," Open Economies Review, Springer, vol. 20(2), pages 241-263, April.
- Dixit, Avinash & Lambertini, Luisa, 2001. "Monetary-fiscal policy interactions and commitment versus discretion in a monetary union," European Economic Review, Elsevier, vol. 45(4-6), pages 977-987, May.
- Dixit, Avinash & Lambertini, Luisa, 2003. "Symbiosis of monetary and fiscal policies in a monetary union," Journal of International Economics, Elsevier, vol. 60(2), pages 235-247, August.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Angela Procopio).
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.