Fed paper studies impact of fiscal reform within a monetary union
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 info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
More on Monetary Policy
Research queries monetary policy ability to curb financial crises
“Leaning against the wind” is unlikely to work, New York Fed paper argues
Neutral interest rate likely to rise, paper finds
Several factors are pushing rate upwards, Bank of Canada researchers say
Malaysian central bank holds policy rate
BNM’s efforts to support the ringgit are paying off, deputy governor says
BoE hints at possible cuts before Fed
Rate cuts may exceed market expectations, Andrew Bailey says
Sweden cuts rates while Norway holds
Norges Bank warns slowing disinflation may mean maintaining rates for longer than it expected
BIS’s Zhang Tao on why Asian central banks favour a broader policy mix
The BIS’s Asia chief speaks with Christopher Jeffery and Jimmy Choi about supporting liquidity, financial stability and innovation in the Asia-Pacific region
Turkey official inflation surges to nearly 70%
Finance minister Şimşek says inflation will peak in May and then decline
Neutral interest rates at pre-pandemic levels, Bank of Canada finds
Nominal neutral interest rates in both countries sit between 2.25% and 3.25%