A Fiscal Union for the Euro: Some Lessons from History

34 Pages Posted: 21 Sep 2011

See all articles by Michael D. Bordo

Michael D. Bordo

Rutgers University, New Brunswick - Department of Economics; National Bureau of Economic Research (NBER)

Agnieszka Markiewicz

Erasmus University Rotterdam (EUR); Tinbergen Institute

Lars Jonung

Lund University - Dept. of Economics

Date Written: September 2011

Abstract

The recent financial crisis 2007-2009 was the longest and the deepest recession since the Great Depression of 1930. The crisis that originated in subprime mortgage markets was spread and amplified through globalised financial markets and resulted in severe debt crises in several European countries in 2010 and 2011. Events revealed that the European Union had insufficient means to halt the spiral of European debt crisis. In particular, no pan-European fiscal mechanism to face a global crisis is available at present. The aim of this study is to identify the characteristics of a robust common fiscal policy framework that could have alleviated the consequences of the recent crisis. This is done by using the political and fiscal history of five federal states; Argentina, Brazil, Canada, Germany and the United States.

Suggested Citation

Bordo, Michael D. and Markiewicz, Agnieszka and Jonung, Lars, A Fiscal Union for the Euro: Some Lessons from History (September 2011). NBER Working Paper No. w17380. Available at SSRN: https://ssrn.com/abstract=1931150

Michael D. Bordo (Contact Author)

Rutgers University, New Brunswick - Department of Economics ( email )

New Brunswick, NJ
United States

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Agnieszka Markiewicz

Erasmus University Rotterdam (EUR) ( email )

Burgemeester Oudlaan 50
3000 DR Rotterdam, Zuid-Holland 3062PA
Netherlands

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

Lars Jonung

Lund University - Dept. of Economics ( email )

Box 7080
Lund, 22007
Sweden

Register to save articles to
your library

Register

Paper statistics

Downloads
67
Abstract Views
704
rank
335,575
PlumX Metrics