Federal Monetary Policy
CESifo, Munich, 2001
CESifo Working Paper No. 422
![](https://cesifo.org/DocImg/cesifo_wp422.jpg?c=1689237192)
What is the optimal institutional structure for an independent central bank? The paper shows when it will be optimal for a country to have a central bank to be organized according to federal, purely national or a combination of both aspects. The analysis is then extended to a supranational monetary union and it is shown which organizational structure of a common central bank is optimal for participating countries and when they are willing to join. The implications for an enlargement of a monetary union are derived as well.