In a monetary union time inconsistency provides the rationale for central bank conservativeness and against the coordination of national fiscal policies. We show that this result is based on the implicit assumption of exogenous labor markets and that, once wage setters' behavior is explicitly...

The European Union is at a crossroads. This book analyzes the historical roots of the EU's monetary and financial institutions in order to better understand its struggle to maintain an economic and monetary union, as well as the ongoing problems facing the Euro. The institutions of the EU are...