Would Fiscal Authorities in the EMU prefer to coordinate?

Identificador:  PC:2048

Handle: https://hdl.handle.net/20.500.11797/PC2048

Autores:  Ferré Carracedo, Montserrat

Resumen:
This article studies whether fiscal authorities would prefer to operate like in the current EMU or to coordinate according to the theoretical literature. The EMU approach will lead to higher volatility of interest rates, output, inflation and average budget deficits, but the SGP deficit target will be breached less often. Keywords: fiscal policy coordination, monetary union, Stability and Growth Pact. JEL No. E61, E63, F33, H0