Fiscal aspects of European monetary integration

Monetary union in Europe started in 1999. The fiscal policy implications are, in many ways, more complex than the monetary issues. This book contains 11 papers and three review essays, which analyze a spectrum of empirical, theoretical, institutional and political aspects of the design and impact of fiscal policy in EMU. The contributors are experienced analysts in the field. Topics covered include the need for and consequences of fiscal co-ordination, constraints on national deficits and debt levels (the Stability Pact), and the role of fiscal federalism and insurance. The importance of co-ordinating fiscal and monetary policies is also considered in depth. As long as these strategic and institutional aspects remain imperfectly understood, EMU will not be able to function to its full advantage and may suffer periods of instability or weakness. Contains 11 papers and three review essays, which analyze a spectrum of empirical, theoretical, institutional and political aspects of the design and impact of fiscal policy in EMU. This text covers topics such as the need for and consequences of fiscal co-ordination.