Cooper, Russell; Kempf, Hubert; Peled, Dan - Centre d'Économie de la Sorbonne, Université Paris 1 … - 2008
This paper studies the inflationary implications of interest bearing regional debt in a monetary union. Is this debt simply backed by future taxation with non inflationary consequences ?. Or will the circulation of region debt induce monetization by a central bank ?. We argue here that both...