Detken, Carsten; Gaspar, Vítor; Winkler, Bernhard - European Central Bank - 2004
Monetary Union tempts governments to exploit the enlarged common pool of savings. In Nash equilibrium all governments increase … effect). The resulting deficit bias occurs even if one assumes that before Monetary Union countries had eliminated their … discipline in Monetary Union, without the need to assume imperfect credibility of existing Treaty provisions or to refer to …