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Monetary and Fiscal Policy with and without the Euro Patterns in Neighboring Areas

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Author Info
Christofer A. Pissarides (Professor of Economics, London School of Economics, London, UK)

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Abstract

I consider the options that governments have in the setting of monetary and fiscal policy with and without adoption of the euro. I argue that some issues, such as the role of ender of last resort, have not yet been satisfactorily addressed by the European Central Bank. But on balance, the conclusion reached is that although the adoption of the single currency restricts the ability of a country to use discretionary fiscal and monetary policy, the constraints should work in favor of low inflation and economic stability.

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Publisher Info
Article provided by Cyprus Economic Society and University of Cyprus in its journal Ekonomia.

Volume (Year): 4 (2000)
Issue (Month): 1 (Summer)
Pages: 1-18
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Handle: RePEc:ekn:ekonom:v:4:y:2000:i:1:p:1-18

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Web page: http://www.ekonomia.ucy.ac.cy/society.html
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Related research
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Find related papers by JEL classification:
E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization
E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission

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