IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/1998-176.html
   My bibliography  Save this paper

Will Fiscal Policy Be Effective Under EMU?

Author

Listed:
  • Mr. M. Cangiano
  • Mr. Eric Mottu

Abstract

European Economic and Monetary Union does not envisage creating a central fiscal authority. Monetary and exchange rate policies will be centralized, but fiscal policy will remain a national responsibility, in line with the subsidiarity principle. This paper argues that monetary union will generate pressures for closer economic integration than currently envisaged. Although not a necessity, a more active central role could then be justified on the grounds of allocative efficiency, redistribution, and stabilization. While in the short term enhanced policy coordination may address those pressures satisfactorily, as economic integration proceeds, the case for a central fiscal authority may become stronger.

Suggested Citation

  • Mr. M. Cangiano & Mr. Eric Mottu, 1998. "Will Fiscal Policy Be Effective Under EMU?," IMF Working Papers 1998/176, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:1998/176
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=2846
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. F. Javier Salinas, 2002. "Accrual Budgeting And Fiscal Consolidation In The Emu," Contemporary Economic Policy, Western Economic Association International, vol. 20(2), pages 193-206, April.
    2. Janno Reiljan & Kadi Timpmann & Katrin Olenko, 2003. "Key Issues In Developing The Public Administration System Of Estonia Before Joining The European Union," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 17, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    3. Michael D. Bordo & Lars Jonung, 1999. "The Future of EMU: What Does the History of Monetary Unions Tell Us?," NBER Working Papers 7365, National Bureau of Economic Research, Inc.
    4. Davide Furceri, 2002. "Risk-sharing e architettura istituzionale delle politiche di stabilizzazione nell'UME: aspetti metodologici e verifica empirica," Rivista di Politica Economica, SIPI Spa, vol. 92(6), pages 175-210, November-.
    5. Konrad Szelag, 2008. "A Single Fiscal Policy in the Euro Area: Vision or Utopia?," NBP Working Papers 46, Narodowy Bank Polski.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:1998/176. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.