incorporation of uncertainty into policy decision-making. The sort of post-crisis uncertainty that central banks are dealing with … this burden of coherence means that fundamental uncertainty must be incorporated explicitly into the policy formulation … management, one consequence of which is to inject a little more realism about uncertainty into the policy narrative, while …

We examine monetary and fiscal interactions in a monetary union model with uncertainty due to imperfect central bank … transparency. It is first shown that monetary uncertainty discourages excessive taxation and may thus reduce average inflation and … output distortions. However, as countries enter the monetary union, this tax-restraining effect of uncertainty is mitigated …

The paper examines the monetary-fiscal interactions in a monetary union model with uncertainty due to imperfect central … bank transparency. We first show that monetary uncertainty disciplines fiscal policymakers and thereby reduces taxes … uncertainty is mitigated. As a consequence, monetary union enlargement may lead to a more aggressive fiscal stance in some member …