After introducing digital currency, the central bank emerges as a monopolist bank. It then faces an "impossible trinity". To achieve price stability and financial stability, optimal consumption allocation is sacrificed. In this paper, I show that fiscal policy designed in coordination with the...

This research analyzes the regional price stability in Indonesia, post the implementation of the UU No.23, 1999 and UU No.22, 1999. The first relates to the task of Bank Indonesia to stabilize the Rupiah, while the latter is about the fiscal decentralization from the center to the regional...

The paper presents a model of fiscal dominance with borrowing constraints, and provides evidence for a large number of sub-Saharan African countries on the relative importance of fiscal and monetary determinants of inflation. Based on the dynamic response of inflation to different shocks,...