In monetary unions, monetary policy is typically made by delegates of the member countries. This procedure raises the possibility of 'strategic delegation' - that countries may choose the types of delegates to influence outcomes in their favor. We show that without commitment in monetary policy,...

This paper presents a model of optimal taxation in which both private agents and the government can default on their debt. We first consider Ramsey equilibria in which the government can precommit to its policies but in which private agents can default. We then consider sustainable equilibria in...