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Policy Coordination in the Euro Area

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  • Carlo Panico
  • Vàzquez Suàrez Marta
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    Abstract

    The paper deals with the problems of coordination between monetary and fiscal policies in the Euro area. It examines how the existing institutions handle these problems and how the literature evaluates their working, deriving from these evaluations a proposal to reorganise them. The paper points out that there is a need for coordination between monetary and fiscal policies when both cyclical (short-run) and structural (long-run) problems are dealt with. Then it assesses how coordination is carried out under the existing institutional arrangements and identifies which parts of them, according to the existing literature, are in need of modification. Finally, on the basis of the content of this literature, it formulates a proposal to reform the institutional arrangements and the economic content of the Stability and Growth Pact, which aims at making them work effectively.

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    Bibliographic Info

    Article provided by FrancoAngeli Editore in its journal STUDI ECONOMICI.

    Volume (Year): 2008/96 (2008)
    Issue (Month): 96 ()
    Pages: 5-31

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    Handle: RePEc:fan:steste:v:html10.3280/ste2008-096001

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    Cited by:
    1. Petraglia C. & Purificato F., 2013. "Single currency and supranational constraints to fiscal policies in the Eurozone during the crisis," Rivista economica del Mezzogiorno, Società editrice il Mulino, issue 4, pages 1065-1094.

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