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One money, but many fiscal policies in Europe : what are the consequences?

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Uhlig, H. (Tilburg University, Center for Economic Research)

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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 a 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.

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Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 32.

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Date of creation: 2002
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Handle: RePEc:dgr:kubcen:200232

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Find related papers by JEL classification:
E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
H0 - Public Economics - - General
H7 - Public Economics - - State and Local Government; Intergovernmental Relations

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