This paper studies the implication, in terms of welfare and monetary policy, of unequal degrees of competition across … members of a currency area. We look at two ways in which the degree of competition in the market for goods can affect welfare … competition tends to be detrimental to welfare. Second, welfare increases in proportion to the asymmetry of the union. These …

This paper studies the implication, in terms of welfare and monetary policy, of unequal degrees of competition across … members of a currency area. We look at two ways in which the degree of competition in the market for goods can affect welfare … competition tends to be detrimental to welfare. Second, welfare increases in proportion to the asymmetry of the union. These …

than competing for additional loans. As a result, banking activity need not be welfare-improving if inflation is …. Normatively, under a given inflation target, welfare gains arise if a central bank can use additional liquidity-provision (or tax …