This paper studies the optimal monetary organization from a social point of view in a model with three players (the central bank, the government, the private sector), and in particular the reasons leading to people to entrust monetary policy to a central banker who weights inflation deviations...

[fre] Même s'il n'existe aucun problème d'incohérence temporelle, les États membres d'une union monétaire ont intérêt à nommer un gouverneur qui ne partage pas leurs préférences, en raison des externalités des politiques budgétaires. La modification volontaire de l'arbitrage...

In a monetary union, the incentives of national authorities to misrepresent their true preferences still exist in the absence of time inconsistency issues. With fiscal spillovers among countries, delegating the control of monetary policy to a central banker with a different output-inflation...

The paper deals with monetary and fiscal policy strategic interactions between the European Union and the rest of the world. We use a three-country Mundell-Fleming model to analyze the policy-makers?' responses to a negative global productivity shock. The results obtained in a fully...

Corruption can enhance welfare in two complementary ways in a dynamic time inconsistency model: first, by mitigating the inflation bias of discretionary monetary policy; second, by reducing the loss due to the suboptimal distribution of distortions associated with public debt accumulation. The...

This note explores the link between the effort level to strengthen institutional quality and the nature of the fiscal policy game among interdependent economies plagued by corruption. Every country has a lower incentive to improve public governance when the effort made abroad to remedy...

Apart from the main misconception of money creation, that is, the exogenous-endogenous money creation debate, there exist a number of lesser misconceptions, including that banks are 'fully lent' when they have no excess reserves, that money creation begins with a new bank deposit, and that a...

Founded on the money multiplier, the imminent demise of which is not overstated, there exists a profound misconception: that money creation begins with a new deposit. In many cases the source of the new deposit is not specified, and somehow the recipient bank acquires reserves. In other cases...

The endogenous-exogenous money debate is a futile one. Exogenous money creation, based on the money multiplier, is not a money creation process. Rather, it is a monetary policy model, but in it money is still created endogenously: bank loans (and foreign asset accumulation by banks) concurrently...

Exogenous money creation does not exist, but did under a past specie-money system. Central bank control of bank reserves and therefore control of bank deposit (money) creation via the money multiplier can exist, but this has nothing to do with the process of money creation. Rather, it is a style...