Fiscal solvency and price level determination in a monetary union

• 成果类型: Article
• 署名作者: Bergin, PR
• 署名单位: University of California System; University of California Davis
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/S0304-3932(99)00041-0
• 发表日期: 2000
• 页码: 37-53
• 关键词: Monetary union; Fiscal theory of the price level; fiscal rules

摘要

This paper applies the fiscal theory of price level determination to the case of a monetary union. A fiscal perspective suggests, first, that the focus of past studies on seigniorage, per se, may be misplaced. Second, a rise in the level of debt by one member government can raise the common price level throughout the union, suggesting a role for fiscal rules. Third, conditions are discussed under which fiscal solvency is not necessary for each member government in a monetary union. (C) 2000 Elsevier Science B.V. All rights reserved. JEL classification: E31; E63; F36.