Problems of fiscal consolidation and policy coordination

Arbeitspapier

This paper deals with problems of fiscal consolidation and policy coordination within the European Monetary Union. In the first place, it investigates the potential problems which are caused by cross-country differences in key fiscal parameters and the asymmetric nature of these parameters. In the light of these findings, the pros and cons of policy coordination is evaluated using some alternative multi-country estimates as a point of reference. The empirical results clearly show that policy coordination within the EMU context is difficult because of these large country differences and asymmetries in the transmission mechanisms of fiscal policy. Even so, it is shown that policy coordination clearly pays off.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Discussion paper ; No. 82

Classification and Topics

• Classification: Wirtschaft ; National Deficit; Surplus ; Policy Objectives; Policy Designs and Consistency; Policy Coordination ; Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
• Subject: Fiscal policy ; policy coordination ; government deficit ; EMU

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Viren, Matti
• Event: Veröffentlichung
• (who): Aboa Centre for Economics (ACE)
• (where): Turku
• (when): 2012

Further information

• Handle: http://hdl.handle.net/10419/233298
• Last update: 10.03.2025, 11:43 AM CET