Government Deficits, Transfers and Debts

Hubert Kempf
Additional contact information
Hubert Kempf: École Normale Supérieure Paris-Saclay

Chapter 5 in Monetary Unions, 2022, pp 167-196 from Springer

Abstract: Abstract Chapter 5 develops a public finance view on monetary unions. Focusing on multinational unions, it analyses the impact of monetary unification on governmental budgets and deficits. Fiscal constraints can be assessed both at the country level and at the union level. Based on explicit formulas for the government budget constraints of member countries, it proves that the constraints due to the sharing of a common currency implies that transfers are unavoidable except under very stringent conditions. This affects the conditions for public debt sustainability. This chapter ends with a discussion of the two ways to discipline fiscal profligacy within a monetary union, through markets or through restricting institutions.

Date: 2022
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sptchp:978-3-030-93232-9_5

Ordering information: This item can be ordered from
http://www.springer.com/9783030932329

DOI: 10.1007/978-3-030-93232-9_5

Access Statistics for this chapter

More chapters in Springer Texts in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().