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A Scheme to Coordinate Monetary and Fiscal Policies in the Euro Area

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Author Info
Marta Vàzquez Suàrez
Carlo Panico
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 presents a proposal to reorganize them. The paper points out that, contrary to what is often stated by the literature, 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, summarizes the main literature that has dealt, in recent years, with the need to modify them and proposes a new scheme, which intends to make them work effectively.

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File URL: http://www.peri.umass.edu/fileadmin/pdf/working_papers/working_papers_101-150/WP143.pdf
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Paper provided by Political Economy Research Institute, University of Massachusetts at Amherst in its series Working Papers with number wp143.

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Date of creation: 2007
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Handle: RePEc:uma:periwp:wp143

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Related research
Keywords: European Monetary Union policy coordination Stability and Growth Pact

Find related papers by JEL classification:
E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization
F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism

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This page was last updated on 2008-10-13.

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