Skip to Main content Skip to Navigation
Preprints, Working Papers, ...

Inflation Divergence and Public Deficits In an Monetary Union

Abstract : We reconsider the link between domestic public debts and average and domestic inflation rates in a monetary union, using a modified version of a model by B-V (2002). It is thus possible to show that the causation between the inflation dynamics and the public finances might go from the former to the latter. We are thus able to tackle the issue of persistently divergent inflation rates within the euro area. We also demonstrate that the homogeneous fiscal rules defined in the Stability and Growth Pact are ill-suited and might even be counterproductive. This conclusion is all the more true as the EU is on the eve of enlargement towards the CEECs: our results show that imposing homogeneous fiscal rules to the CEECs may prove disruptive.
Document type :
Preprints, Working Papers, ...
Complete list of metadata

Cited literature [4 references]  Display  Hide  Download

https://hal-sciencespo.archives-ouvertes.fr/hal-01065062
Contributor : Spire Sciences Po Institutional Repository Connect in order to contact the contributor
Submitted on : Wednesday, September 17, 2014 - 5:16:49 PM
Last modification on : Monday, March 21, 2022 - 2:48:01 PM
Long-term archiving on: : Thursday, December 18, 2014 - 11:55:47 AM

File

wp2003-05.pdf
Files produced by the author(s)

Identifiers

  • HAL Id : hal-01065062, version 1
  • SCIENCESPO : 2441/2302

Collections

Citation

Jérôme Creel, Jacques Le Cacheux. Inflation Divergence and Public Deficits In an Monetary Union. 2003. ⟨hal-01065062⟩

Share

Metrics

Record views

47

Files downloads

196