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Fiscal Policies in a Monetary Union

In: Monetary Unions

Author

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  • Hubert Kempf

    (École Normale Supérieure Paris-Saclay
    NRU Higher School of Economics)

Abstract

Chapter 6 deals with fiscal policies in a monetary union, including those of a federal Treasury. The macroeconomic impacts of national or union-wide fiscal measures are discussed in particular by means of a variant of the IS-LM-BP model adapted to a monetary union. Monetary and fiscal policies interact. Crucially fiscal policies impact the external position of each member country (or region) and must therefore be checked as they have the potential to jeopardize the union. This makes clear that some form of fiscal discipline must be put in place in a monetary union.

Suggested Citation

  • Hubert Kempf, 2022. "Fiscal Policies in a Monetary Union," Springer Texts in Business and Economics, in: Monetary Unions, chapter 6, pages 197-232, Springer.
    • Handle: RePEc:spr:sptchp:978-3-030-93232-9_6
    DOI: 10.1007/978-3-030-93232-9_6
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