What Is the Optimal Institutional Arrangement for a Monetary Union?

The aim of this paper is to design the optimal institutional arrangement for a monetary union. Using a two-country rational expectations model, the study analyses how the conservatism of the area-wide central bank and the penalty system for fiscal deviation (Stability and Growth Pact) should be designed with respect to different economic shocks.

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Year of publication:	1999
Authors:	Gambacorta, L.
Institutions:	Banca d'Italia
Subject:	MONETARY UNION

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Series:	Banca Italia - Servizio di Studi.
Type of publication:	Book / Working Paper
Notes:	49 pages
Classification:	E40 - Money and Interest Rates. General ; E42 - Monetary Systems; Standards; Regimes; Government and the Monetary System
Source:	RePEc - Research Papers in Economics

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