One Money, But Many Fiscal Policies in Europe: What are the Consequences?
41 Pages Posted: 18 Mar 2002
There are 2 versions of this paper
One Money, But Many Fiscal Policies in Europe: What are the Consequences?
One Money, But Many Fiscal Policies in Europe: What are the Consequences?
Date Written: April 3, 2002
Abstract
This paper outlines some issues regarding the interaction of independent fiscal authorities and one central bank in the European monetary union. It points out the possibilities for coordination failures, ranging everywhere from potentially excessive deficits and free-riding problems to coordination failures in a European fiscal or banking crises. As policy conclusions, some suggestions for institutional improvements are made. In particular, the Growth and Stability Pact needs strengthening rather than weakening. Furthermore, a solution for EMU-wide banking regulation needs to be found.
Keywords: EMU, monetary policy, fiscal policy, free-riding, monetary-fiscal policy interaction, banking crisis, fiscal crisis
JEL Classification: E5, E6, H0, H7
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Symbiosis of Monetary and Fiscal Policies in a Monetary Union
By Avinash Dixit and Luisa Lambertini
-
Interactions of Commitment and Discretion in Monetary and Fiscal Policies
By Luisa Lambertini and Avinash Dixit
-
One Money, But Many Fiscal Policies in Europe: What are the Consequences?
By Harald Uhlig
-
Is Fiscal Policy Coordination in Emu Desirable?
By Roel M. W. J. Beetsma, Xavier Debrun, ...
-
Is Fiscal Policy Coordination in Emu Desirable?
By Roel M. W. J. Beetsma, Xavier Debrun, ...
-
Is Fiscal Policy Coordination in Emu Desirable?
By Roel M. W. J. Beetsma, Xavier Debrun, ...
-
Fiscal Discretion Destroys Monetary Commitment
By Avinash Dixit and Luisa Lambertini
-
The Gains from Fiscal Cooperation in the Two Commodity Real Trade Model
-
Model Uncertainty, Learning, and the Gains from Coordination
By Atish R. Ghosh and Paul R. Masson
-
Structural Distortions and Decentralized Fiscal Policies in Emu