EconPapers    
Economics at your fingertips  
 

Insulation Impossible: Monetary Policy and Regional Debt Spillovers in a Federation

Russell Cooper, Hubert Kempf () and Dan Peled ()
Additional contact information
Russell Cooper: EUI - European University Institute - Institut Universitaire Européen, Penn State - Pennsylvania State University - Penn State System

PSE-Ecole d'économie de Paris (Postprint) from HAL

Abstract: This paper studies the effects of monetary policy in the presence of debt spillovers within a monetary union. When capital markets are integrated, the fiscal policy of any member country will generally influence equilibrium wages and interest rates across the whole union. We ask whether there exists a monetary policy which can offset these spillovers. Within a general class of monetary policy rules, there does not exist one that completely insulates agents in one region from fiscal policy in the other. These debt spillovers will affect welfare through two channels: intertemporal efficiency and redistribution.

Keywords: monetary policy; debt spillover; monetary union (search for similar items in EconPapers)
Date: 2014-04
References: Add references at CitEc
Citations:

Published in Journal of the European Economic Association, 2014, 12 (2), pp.465-491. ⟨10.1111/jeea.12039⟩

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

Related works:
Journal Article: INSULATION IMPOSSIBLE: MONETARY POLICY AND REGIONAL DEBT SPILLOVERS IN A FEDERATION (2014) Downloads
Working Paper: Insulation Impossible: Monetary Policy and Regional Debt Spillovers in a Federation (2014)
Working Paper: Insulation Impossible: Monetary Policy and Regional Debt Spillovers in a Federation (2014)
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:hal:pseptp:hal-01306072

DOI: 10.1111/jeea.12039

Access Statistics for this paper

More papers in PSE-Ecole d'économie de Paris (Postprint) from HAL
Bibliographic data for series maintained by Caroline Bauer ().

 
Page updated 2025-03-19
Handle: RePEc:hal:pseptp:hal-01306072