Publication
Dec 2011
This paper explores what the polar case of absence of central bank independence might mean for the survival of the euro zone. The intention in doing so is to highlight the dangers that advocates of ECB bailouts seem to ignore. Using a model in which the central bank’s decisions are purely the result of weighing together national objectives — objectives that include both financing government spending and stimulating output as well as keeping inflation low — we consider what would constitute a sustainable composition for the euro zone.
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English (PDF, 28 pages, 1.0 MB) |
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Author | Paul R Masson |
Series | CIGI Papers |
Issue | 1 |
Publisher | Centre for International Governance Innovation (CIGI) |
Copyright | © 2011 Paul R. Masson, This work is licensed under a Creative Commons Attribution — Non-commercial — No Derivatives License. |