Common Currencies vs. Monetary Independence
在两国家开放经济模型中比较了独立货币政策和共同货币安排的优劣，发现货币政策竞争导致长期通胀和利率上升，带来巨大福利损失。
We study the optimal monetary policy in a two-country open-economy model under two monetary arrangements: (a) multiple currencies controlled by independent policy makers; (b) common currencies with a centralized policy maker.Our findings suggest that: (i) monetary policy competition leads to higher long-term inflation and interest rates with large welfare losses; (ii) the inflation bias and the consequent losses are larger when countries are unable to commit to future policies; (iii) the welfare losses from higher long-term inflation dominates the welfare costs of losing the ability to react optimally to shocks. Copyright 2003, Wiley-Blackwell.