This book investigates how observed differences in institutions
affect political and economic outcomes in various social, economic,
and political systems. It also examines how the institutions
themselves change and develop in response to individual and
collective beliefs, preferences, and strategies. This volume
tackles both monetary and real topics in an integrated way, and
represents the first coherent empirical investigation of positive
models of political economy. The various contributions discuss
issues of great topicality not just for Europe, but for all
developed economies: why do central banks matter? What determines
their independence? How do central bank independence and exchange
rate regimes affect monetary integration and activism? The volume
also discusses the costs of a monetary union, unemployment
benefits, and redistributive taxation.
General
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