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Federal Monetary Policy

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  • Carsten Hefeker

Abstract

What is the optimal institutional structure for a federal central bank? The framework developed in this paper is used to analyze under what conditions an individual region will prefer a monetary union to be organized according to regional or common influences and how a combination of both can be rationalized. The implications of an enlargement of a monetary union for changes in its institutional setup are also derived.

Suggested Citation

  • Carsten Hefeker, 2003. "Federal Monetary Policy," Scandinavian Journal of Economics, Wiley Blackwell, vol. 105(4), pages 643-659, December.
    • Handle: RePEc:bla:scandj:v:105:y:2003:i:4:p:643-659
    DOI: 10.1111/j.0347-0520.2003.00007.x
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