Fiscal Unions
We study cross-country insurance in a currency union with nominal price and wage rigidities. We provide two results that build the case for the creation of a fiscal union within a currency union. First, we show that, if financial markets are incomplete, the value of gaining access to any given level...
| Main Authors: | , |
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| Format: | Working Paper |
| Published: |
Cambridge, MA: Department of Economics, Massachusetts Institute of Technology
2012
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| Subjects: | |
| Online Access: | http://hdl.handle.net/1721.1/72556 |