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http://dx.doi.org/10.1628/093245612802920962

has been cited by the following article:

• TITLE: Applied Mathematical Theory for Monetary-Fiscal Interaction in a Supranational Monetary Union

  AUTHORS: Bodo Herzog

  KEYWORDS: Differential Equations, Monetary-Fiscal Interaction, Monetary Union Theory

  JOURNAL NAME: Journal of Applied Mathematics and Physics, Vol.2 No.8, June 27, 2014

  ABSTRACT: I utilize a differentiable dynamical system á la Lotka-Voletrra and explain monetary and fiscal interaction in a supranational monetary union. The paper demonstrates an applied mathematical approach that provides useful insights about the interaction mechanisms in theoretical economics in general and a monetary union in particular. I find that a common central bank is necessary but not sufficient to tackle the new interaction problems in a supranational monetary union, such as the free-riding behaviour of fiscal policies. Moreover, I show that supranational institutions, rules or laws are essential to mitigate violations of decentralized fiscal policies.