TY - JOUR
T1 - The advantage of international fiscal cooperation under alternative monetary regimes
AU - Jensen, Henrik
N1 - JEL classification: E61, F33, F42
PY - 1996
Y1 - 1996
N2 - We consider the strategic interplay between international monetary and fiscal cooperation in a world of interdependent economies. Motivated by the ongoing discussion of monetary unification of Europe, focus is on monetary cooperation, and in particular how its performance is altered by the introduction of fiscal (tax) cooperation. Our main result is that fiscal cooperation may be disadvantageous when monetary cooperation lacks credibility with private sectors. On the other hand, fiscal cooperation under a rule based monetary regime is always advantageous
AB - We consider the strategic interplay between international monetary and fiscal cooperation in a world of interdependent economies. Motivated by the ongoing discussion of monetary unification of Europe, focus is on monetary cooperation, and in particular how its performance is altered by the introduction of fiscal (tax) cooperation. Our main result is that fiscal cooperation may be disadvantageous when monetary cooperation lacks credibility with private sectors. On the other hand, fiscal cooperation under a rule based monetary regime is always advantageous
U2 - 10.1016/S0176-2680(96)00012-2
DO - 10.1016/S0176-2680(96)00012-2
M3 - Journal article
SN - 0176-2680
VL - 12
SP - 485
EP - 504
JO - European Journal of Political Economy
JF - European Journal of Political Economy
IS - 3
ER -