Aguiar, Mark; Amador, Manuel; Farhi, Emmanuel; … - Federal Reserve Bank of Minneapolis - 2015
common monetary authority chooses inflation for the union, also without commitment. We first describe the existence of a … wisdom that all countries should prefer a union with low-debt members, as such a union can credibly deliver low inflation …We study fiscal and monetary policy in a monetary union with the potential for rollover crises in sovereign debt …