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The ECB’s fiscal policy

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  • Hans-Werner Sinn

    (Ludwig Maximilian’s University Munich)

Abstract

While the ECB helped mitigate the euro crisis in the aftermath of Lehman, it has stretched its monetary mandate and moved into fiscal territory. This text describes and summarizes the crucial role played by the ECB in the intervention spiral resulting from its bid to manage the crisis. It also outlines ongoing competitiveness problems in southern Europe, discusses the so-called austerity policy of the Troika, comments on QE and presents two alternative paths for the future development of Europe.

Suggested Citation

  • Hans-Werner Sinn, 2018. "The ECB’s fiscal policy," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 25(6), pages 1404-1433, December.
    • Handle: RePEc:kap:itaxpf:v:25:y:2018:i:6:d:10.1007_s10797-018-9501-8
    DOI: 10.1007/s10797-018-9501-8
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    References listed on IDEAS

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    1. Hans-Werner Sinn & Timo Wollmershäuser, 2012. "Target loans, current account balances and capital flows: the ECB’s rescue facility," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 19(4), pages 468-508, August.
    2. Hans-Werner Sinn, 2015. "The Euro: From Peace Project to Bone of Contention," Books, by Staff of the ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 201510, April.
    3. Sinn, Hans-Werner, 2017. "The Euro Trap: On Bursting Bubbles, Budgets, and Beliefs," OUP Catalogue, Oxford University Press, number 9780198791447, Decembrie.
    4. Hans-Werner Sinn, 2015. "Der Euro: Von der Friedensidee zum Zankapfel," Books, by Staff of the ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 2015001.
    5. Hans-Werner Sinn, 2015. "The Greek Tragedy," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 2015(JUNE), pages 5-35, June.
    6. Steiner, Andreas, 2016. "Global Imbalances, Financial Crises, and Central Bank Policies," Elsevier Monographs, Elsevier, edition 1, number 9780128104026.
    7. Hans-Werner Sinn, 2015. "The Greek Tragedy," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 15(1), pages 5-35, June.
      • Hans-Werner Sinn, 2015. "The Greek Tragedy," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 68(1), pages 03-33, May.
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    Cited by:

    1. Soós, Károly Attila, 2023. "Paul De Grauwe: Economics of Monetary Union. Oxford University Press, Oxford, 2022, 320 o [Paul De Grauwe: Economics of Monetary Union. Oxford University Press, Oxford, 2022, 320 p]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(10), pages 1173-1187.
    2. Nicola Comincioli & Sergio Vergalli & Paolo Panteghini, 2019. "Business tax policy under default risk," CESifo Working Paper Series 7664, CESifo.
    3. Fernando López‐Castellano & Fernando García‐Quero, 2019. "The Euro System as a Laboratory for Neoliberalism: The Case of Spain," American Journal of Economics and Sociology, Wiley Blackwell, vol. 78(1), pages 167-193, January.
    4. Soós, Károly Attila, 2021. "Az optimális valutaövezet két elmélete - aszimmetrikus sokkok és nemzetközi pénzügyi integráció [Principles of optimal currency areas: asymmetric shocks and international financial integration]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(12), pages 1250-1275.

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    More about this item

    Keywords

    ECB; Fiscal policy; Monetary policy; Outright monetary transactions; Euro crisis;
    All these keywords.

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
    • 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
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

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