Fiscal Backing for Price Stability in a Monetary Union
研究了在异质性货币联盟中，不同国家财政政策与共同财政政策组合如何决定价格水平，并提出了协调政策以可靠提供财政支持的方法。
Fiscal backing is the idea that for the price level to be uniquely determined, fiscal policy must be active at least in some states of the world. We extend the fiscal theory of the price level to a heterogenous monetary union. Different combinations of national fiscal policies and a common fiscal policy with “Eurobonds” amount to active fiscal policy for the union. They all yield price-level determinacy but can have very different implications for the effects of fiscal and monetary policy. We propose how to coordinate the national policies and the common policy to provide fiscal backing reliably.