Theory and Practice of Confederate Finances

  • Dubravko Mihaljek


Recent coalescing and splintering movements in Europe and other parts of the world have highlighted the importance of political and constitutional constraints on the design of interjurisdictional fiscal arrangements, and challenged public finance analysts to understand why it is that nations enter or leave such arrangements. In an attempt to address these important issues, this chapter looks at the historical experiences of confederations — that is, structures in which the ‘federal’ government is subordinate to ‘lower-level’ governments — and at the key issues that arise in the design of fiscal arrangements within confederations.


Member State Central Government Fiscal Policy Monetary Union Currency Union 
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© Palgrave Macmillan, a division of Macmillan Publishers Limited 1998

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  • Dubravko Mihaljek

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