Hefeker, Carsten; Zimmer, Blandine - Volkswirtschaft Abteilung, Fachbereich … - 2009
We examine monetary and fiscal interactions in a monetary union model with uncertainty due to imperfect central bank … output distortions. However, as countries enter the monetary union, this tax-restraining effect of uncertainty is mitigated …. The monetary union may hence lead to higher fiscal distortions in some member countries, depending on governments …