Allsopp, Christopher; Vines, David - Directorate-General Economic and Financial Affairs, … - 2008
, or, even if not, the real exchange rate might overshoot. Fiscal policy may help to stabilise inflation and also to target … the real exchange rate. The paper argues that an improved fiscal policy process might result in improved macroeconomic … adjustment of intra-European real exchange rates. We recommend using fiscal policy to stabilise inflation and also to target the …