search query: @author Bovenberg, A. / total: 6
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| Author: | Beetsma, R. Bovenberg, A. |
| Title: | Does monetary unification lead to excessive debt accumulation? |
| Journal: | Journal of Public Economics
1999 : DEC, VOL. 74:3, p. 299-325 |
| Index terms: | ECONOMICS MONETARY POLICY DEBT |
| Language: | eng |
| Abstract: | If discretionary monetary policy gives rise to an inflation bias, monetary unification boosts the accumulation of public debt. The additional debt accumulation harms welfare if governments are sufficiently myopic. In the presence of myopic governments, debt ceilings play useful role in avoiding excessive debt accumulation in a monetary union and allowing a conservative, independent central bank to focus on price stability. |
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