; ; ; "ActiveFedora::Aggregation::ListSource" . a , ; "Time Inconsistency and Free-Riding in a Monetary Union"; ; "batchuser@example.com"; "Kehoe, Patrick J.", "Chari, V. V."; "Federal Reserve Bank of Minneapolis"; "Maastricht Treaty", "Fixed exchange rates", "Monetary regime", "European Union", "Dollarization"; "F41 - Open Economy Macroeconomics", "E58 - Central Banks and Their Policies", "E63 - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy", "F33 - International Monetary Arrangements and Institutions", "E42 - Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems", "E61 - Policy Objectives; Policy Designs and Consistency; Policy Coordination", "F42 - International Policy Coordination and Transmission", "F30 - International Finance: General"; "We analyze the setting of monetary and nonmonetary policies in monetary unions. We show that in these unions a time inconsistency problem in monetary policy leads to a novel type of free-rider problem in the setting of nonmonetary policies, such as labor market policy, fiscal policy, and bank regulation. The free-rider problem leads the union’s members to pursue lax nonmonetary policies that induce the monetary authority to generate high inflation. The free-rider problem can be mitigated by imposing constraints on the nonmonetary policies, like unionwide rules on labor market policy, debt constraints on members’ fiscal policy, and unionwide regulation of banks. When there is no time inconsistency problem, there is no free-rider problem, and constraints on nonmonetary policies are unnecessary and possibly harmful."^^; "2008-04"; "2019-06-21T21:28:33.269931484+00:00"^^; "https://doi.org/10.21034/sr.308"; ; "https://creativecommons.org/licenses/by-nc/4.0/"; "Thu Nov 7 21:54:02 2019"; "https://creativecommons.org/licenses/by-nc/4.0/"; "Research Paper"; "393", "129"; "Staff report (Federal Reserve Bank of Minneapolis. Research Department)"; "308"; "Monetary regime", "Dollarization", "Maastricht Treaty", "European Union", "Fixed exchange rates"; ; ; ; ; "Federal Reserve Bank of Minneapolis. Research Department"; "Published in: _Journal of Money, Credit, and Banking_ (Vol. 40, No. 7, October 2008, pp. 1329-1355) https://doi.org/10.1111/j.1538-4616.2008.00162.x. "^^; ; "Publication" . ; .