Arbeitspapier
The tragedy of the commons and inflation bias in the euro area
Central bank credit has expanded dramatically in some of the euro area member countries since the beginning of the financial crisis. This paper makes two contributions to understand this stylized fact. First, we discuss a simple model of monetary policy that includes (i) a credit channel and (ii) a common pool problem in a monetary union. We illustrate that the interaction of the two elements leads to an inflation bias that is independent of the standard time-inconsistency bias. Secondly, we present empirical evidence that is consistent with the view of fragmented monetary policy and changing policy objectives among the national cen-tral banks in the euro area. We show that after 2007, central bank credit has been highly correlated with unemployment, but not with inflation in the respective countries.
- Sprache
-
Englisch
- Erschienen in
-
Series: CESifo Working Paper ; No. 4036
- Klassifikation
-
Wirtschaft
Monetary Policy
Central Banks and Their Policies
Public Goods
- Thema
-
tragedy of the commons
inflation bias
credit channel
TARGET2
euro area
Geldpolitik
Kreditkanal
Europäische Wirtschafts- und Währungsunion
Gemeingüter
Inflation
Eurozone
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Dinger, Valeriya
Steinkamp, Sven
Westermann, Frank
- Ereignis
-
Veröffentlichung
- (wer)
-
Center for Economic Studies and ifo Institute (CESifo)
- (wo)
-
Munich
- (wann)
-
2012
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:41 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Dinger, Valeriya
- Steinkamp, Sven
- Westermann, Frank
- Center for Economic Studies and ifo Institute (CESifo)
Entstanden
- 2012
Ähnliche Objekte (12)
The tragedy of the commons and inflation bias in the euro area
On the Geographical Dispersion of Euro Currency Trading: An Analysis of the First 20 Years and a Comparison to the RMB
The Deutschmark in Eastern Europe, Black Money and the Euro: On the Size of the Effect
Wie groß ist der Keynesianische Multiplikator in Deutschland?
Discussion of 'TARGET2 and central bank balance sheets'
Zur Kreditklemme: Ein Vergleich zwischen Japan und Deutschland
Vorstellung der Thesen von Hans-Werner Sinn: Europa: So oder so – eine Einführung in die Themen und Thesen
How strong is the case for dollarization in Costa Rica? A note on the business cycle comovements with the United States
How strong is the case for dollarization in Costa Rica? : a note on the business cycle comovements with the United States
Equity Price Dynamics Before and After the Introduction of the Euro: A Note
Equity Price Dynamics Before and After the Introduction of the Euro. A Note
The Seniority Conundrum – Further Evidence
The tragedy of the commons and inflation bias in the euro area
On the Geographical Dispersion of Euro Currency Trading: An Analysis of the First 20 Years and a Comparison to the RMB
The Deutschmark in Eastern Europe, Black Money and the Euro: On the Size of the Effect
Wie groß ist der Keynesianische Multiplikator in Deutschland?
Discussion of 'TARGET2 and central bank balance sheets'
Zur Kreditklemme: Ein Vergleich zwischen Japan und Deutschland
Vorstellung der Thesen von Hans-Werner Sinn: Europa: So oder so – eine Einführung in die Themen und Thesen
How strong is the case for dollarization in Costa Rica? A note on the business cycle comovements with the United States
How strong is the case for dollarization in Costa Rica? : a note on the business cycle comovements with the United States
Equity Price Dynamics Before and After the Introduction of the Euro: A Note
Equity Price Dynamics Before and After the Introduction of the Euro. A Note
The Seniority Conundrum – Further Evidence
The tragedy of the commons and inflation bias in the euro area
On the Geographical Dispersion of Euro Currency Trading: An Analysis of the First 20 Years and a Comparison to the RMB
The Deutschmark in Eastern Europe, Black Money and the Euro: On the Size of the Effect
Wie groß ist der Keynesianische Multiplikator in Deutschland?
Discussion of 'TARGET2 and central bank balance sheets'
Zur Kreditklemme: Ein Vergleich zwischen Japan und Deutschland
Vorstellung der Thesen von Hans-Werner Sinn: Europa: So oder so – eine Einführung in die Themen und Thesen
How strong is the case for dollarization in Costa Rica? A note on the business cycle comovements with the United States
How strong is the case for dollarization in Costa Rica? : a note on the business cycle comovements with the United States
Equity Price Dynamics Before and After the Introduction of the Euro: A Note
Equity Price Dynamics Before and After the Introduction of the Euro. A Note