Proposal for a Stabilisation Fund for the EMU
AbstractThis paper argues that it should be possible to complement Europe’s Economic and Monetary Union with an insurance-type shock absorption mechanism to increase the resilience of member countries to economic shocks and reduce output volatility. Such a mechanism would neither require the establishment of a central authority, nor would it lead to permanent transfers between countries. For this mechanism to become a reality, however, it would be necessary to overcome certain technical problems linked to the difficulty of anticipating correctly the position of an economy in the business cycle.
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Bibliographic InfoPaper provided by Centre for European Policy Studies in its series CEPS Papers with number 8494.
Length: 15 pages
Date of creation: Oct 2013
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-11-29 (All new papers)
- NEP-CBA-2013-11-29 (Central Banking)
- NEP-EEC-2013-11-29 (European Economics)
- NEP-IAS-2013-11-29 (Insurance Economics)
- NEP-MAC-2013-11-29 (Macroeconomics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- Paul de Grauwe, 2013. "Design Failures in the Eurozone: Can they be fixed?," LEQS â LSE 'Europe in Question' Discussion Paper Series 57, European Institute, LSE.
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