Monetary Discipline as a Substitute for Fiscal Reforms and Market Liberalisations

18 Pages Posted: 9 Oct 2014

See all articles by Alberto Dalmazzo

Alberto Dalmazzo

University of Siena - Department of Economics

Date Written: November 2014

Abstract

In an economy with wage‐setting unions where the government has gains from redistribution, we analyse the incentive of incumbent politicians to implement monetary discipline (e.g. by joining a monetary union) against the adoption of fiscal reforms, or deregulation in product markets. We show that monetary discipline can be a ‘substitute’ both for better (i.e. less distortionary) fiscal policies and for deregulation in product markets.

Suggested Citation

Dalmazzo, Alberto, Monetary Discipline as a Substitute for Fiscal Reforms and Market Liberalisations (November 2014). Economic Notes, Vol. 43, Issue 3, pp. 193-210, 2014, Available at SSRN: https://ssrn.com/abstract=2507535 or http://dx.doi.org/10.1111/ecno.12018

Alberto Dalmazzo (Contact Author)

University of Siena - Department of Economics ( email )

Piazza S. Francesco, 7
Siena, I-53100
Italy
+39 0577 232 697 (Phone)

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