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This paper examines the conditions for fiscal restraint to emerge as Nash equilibrium in the game between fiscal authorities in a monetary union and discusses the implications for the ECB`s monetary strategy. We show that fiscal authorities fail to internalize the adverse area-wide effects of...
Persistent link: https://www.econbiz.de/10012760905
This paper examines the conditions for fiscal restraint to emerge as Nash equilibrium in the game between fiscal authorities in a monetary union and discusses the implications for the ECB's monetary strategy. We show that fiscal authorities fail to internalize the adverse area-wide effects of...
Persistent link: https://www.econbiz.de/10014136649
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