Author Description

Depending On The Preferences Of The Central Bank, Countries In A Monetary Union Tend To Accumulate Less Debt. This Reduces The Need For Fiscal Criteria Such As Debt Ceilings. In A Monetary Union With An Independent Central Bank And A Sufficiently Large Number Of Relatively Small Members, Investors Will Begin Rationing Credit To The Government More Rapidly, And An Equilibrium With No Inflation And No Default Exists. However, Highly-indebted Countries Are More Likely To Default Once They Join A Monetary Union. Samir Jahjah. Bibliographic Level Mode Of Issuance: Monograph English