Fiscal discipline and exchange rate systems

• 成果类型: Article
• 署名作者: Canzoneri, MB; Cumby, RE; Diba, BT
• 署名单位: Georgetown University
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1111/1468-0297.00655
• 发表日期: 2001
• 页码: 667-690
• 关键词: price-level determinacy; monetary

摘要

A new 'fiscal' theory of price determination has implications for exchange rate systems and common currency areas. We show that deeper monetary integration requires the discipline of a Ricardian regime; that is, the government must guarantee fiscal solvency for any sequence of prices or exchange rates. Particularly striking results are that a currency peg is not credible without the discipline of a Ricardian regime, and a common currency area is not viable if fiscal policy in two (or more) of the countries in the union is Non-Ricardian. Interestingly, constraints written into the Maastricht Treaty are sufficient for a Ricardian regime.