EconPapers    
Economics at your fingertips  
 

Majority voting may not rule in monetary unions: a comment on Matsen and Roisland

Pierre-Guillaume Méon ()

ULB Institutional Repository from ULB -- Universite Libre de Bruxelles

Abstract: This note reconsiders the results obtained by Matsen and Røisland [Eur. J. Political Economy 21 (2005) 365–384] by dropping the simplifying assumption that the median of country-specific shocks is equal to their mean. Majority voting then increases the volatility of the chosen interest rate without giving member countries a sufficient probability of having their domestic shocks absorbed by the common monetary policy. It thus results in lower welfare than other decision rules. When the variances of domestic shocks sufficiently differ, voting may however reduce the volatility of the interest rate and raise welfare in more stable countries.

Keywords: Decision making; Majority voting; Monetary union; Regional influences (search for similar items in EconPapers)
Date: 2008
Note: SCOPUS: ar.j
References: Add references at CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Published in: European journal of political economy (2008) v.24 n° 1,p.269-279

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:ulb:ulbeco:2013/8356

Ordering information: This working paper can be ordered from
http://hdl.handle.ne ... .ulb.ac.be:2013/8356

Access Statistics for this paper

More papers in ULB Institutional Repository from ULB -- Universite Libre de Bruxelles Contact information at EDIRC.
Bibliographic data for series maintained by Benoit Pauwels ().

 
Page updated 2022-09-19
Handle: RePEc:ulb:ulbeco:2013/8356