Federal Monetary Policy
AbstractWhat is the optimal institutional structure for an independent central bank? The paper shows when it will be optimal for a country to have a central bank to be organized according to federal, purely national or a combination of both aspects. The analysis is then extended to a supranational monetary union and it is shown which organizational structure of a common central bank is optimal for participating countries and when they are willing to join. The implications for an enlargement of a monetary union are derived as well.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 422.
Date of creation: 2001
Date of revision:
Monetary union; federalism; monetary policy;
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