Citation

Discussion Paper Details

Please find the details for DP3296 in an easy to copy and paste format below:

Full Details

Title: One Money, but Many Fiscal Policies in Europe: What Are the Consequences?

Author(s): Harald Uhlig

Publication Date: April 2002

Keyword(s): banking crisis, emu, fiscal crisis, fiscal policy, free-riding, monetary policy and monetary-fiscal policy interaction

Programme Area(s): International Macroeconomics

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 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.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=3296

Bibliographic Reference

Uhlig, H. 2002. 'One Money, but Many Fiscal Policies in Europe: What Are the Consequences?'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=3296