Fed paper studies impact of fiscal reform within a monetary union

federal reserve

A discussion paper, published by the Federal Reserve on October 5, finds a shift from direct to indirect taxes in one member state of a monetary union is unlikely to affect another.

The authors, Anna Lipińska and Leopold von Thadden, say a tax shift – a ‘fiscal devaluation reform' – in one country in their two-country model of a monetary union will only affect the other if they are perfectly integrated.

In such a situation, the shift would produce "small non-negligible" effects on output and

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected]centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: