Imperfect credibility of the band and risk premia in the European Monetary System

Estimation;Depreciation;Franc;EMS;Deutschmark;Lira

The political economy of a changing population

In the context of an overlapping generations model with intragenerational inequality and majority voting, I study how the taxation of the old and retired generation is affected when the population growth rate changes. A fall in the birth rate leads to two opposite effects. On the one hand, the old generation acquires more political power because their relative size in the voting population increases. This exerts downward pressure on the taxation of the old. On the other hand, the tax burden on the young (used to repay the public debt held by the old) increases, so that their support for a low tax rate on assets held by the old decreases. In general, the number of equilibria is either zero or two, one of which involves zero taxation while the other involves partial taxation of the assets held by the old.Macroeconomic Models;Taxation;Population Dynamics;Voting;Ageing;macroeconomics

Bands and statistical properties of EMS exchange rates: A Monte Carlo investigation of three target zone model

Models;EMS

Servicing the public debt: Comment

National Debt

Bands and statistical properties of EMS exchange rates

EMS

Inflation versus taxation: Representative democracy and party nominations

Public Finance;Taxation;Inflation

The optimality of a monetary union without a fiscal union

EMS;fiscal policy;moral hazard

Inflation targets and contracts with uncertain central banker preferences

inflation;central banks;uncertainty

Monetary union without fiscal coordination may discipline policymakers

We show that, with benevolent policymakers and fiscal leadership, monetary unification reduces inflation, taxes and public spending. These disciplining effects of a monetary union, which rise with the number of fiscal players in the union, are likely to raise welfare. Joining an optimally designed monetary union is particularly attractive if fiscal authorities do not care about inflation. Fiscal coordination offsets the disciplining effects of monetary unification. Hence, subsidiarity in fiscal policymaking may enhance welfare.Taxation;Central Banks;Monetary Policy;Monetary Integration;Fiscal Policy;welfare economics