@article{Herzog2014,
  author    = {Herzog, Bodo},
  title     = {Applied mathematical theory for monetary-fiscal interaction in a supranational monetary union},
  journal   = {Journal of applied mathematics and physics},
  volume    = {2},
  number    = {8},
  issn      = {2327-4352},
  doi       = {10.4236/jamp.2014.28081},
  institution = {ESB Business School},
  pages     = {737 -- 744},
  year      = {2014},
  abstract  = {I utilize a differentiable dynamical system {\´a} 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 upranational institutions, rules or laws are essential to mitigate violations of decentralized fiscal policies.},
  language  = {en}
}