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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)

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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Bibliographic 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/
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