Is Fiscal Policy Coordination Needed in a Common Currency Area?

It is widely assumed that a common currency makes it desirable to have also a common fiscal policy. However, if fiscal policy is a source of shocks, independent national fiscal policies are generally preferable because they allow for risk diversification.

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Year of publication:	2008
Authors:	Belke, Ansgar ; Gros, Daniel
Publisher:	Essen : Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI)
Subject:	Finanzpolitik \| Internationale wirtschaftspolitische Koordination \| Währungsunion \| Europäische Wirtschafts- und Währungsunion \| Konjunkturpolitik \| Theorie \| Currency union \| fiscal policy coordination \| stabilisation

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Series:	Ruhr Economic Papers ; 62
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
ISBN:	978-3-86788-066-4
Other identifiers:	575628391 [GVK] hdl:10419/26827 [Handle] RePEc:zbw:rwirep:62 [RePEc]
Classification:	E63 - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization ; F42 - International Policy Coordination and Transmission
Source:	EconStor

Persistent link: https://ebvufind01.dmz1.zbw.eu/10010264733