Co-ordinating Stability: Some Remarks on the Roles of Monetary and Fiscal Policy under EMU

  • Bernhard Winkler


Only a few months into Stage Three of Economic and Monetary Union in Europe (EMU) the issue of policy co-ordination looms large both on the agenda of European policy makers and in the academic debate. Calls for enhanced policy co-ordination have long been a routine ingredient of Sunday speeches and summit declarations. One possible reason why the notion of co-ordination has proved attractive is the vagueness of the concept as used in the policy context. A second reason is that the term co-ordination usually carries a positive connotation. This is also a legacy of the academic literature, where — at least for the simple two player models used initially — co-ordination is “always good”, i.e. welfare improving, almost by definition. Both features, a lack of clarity of what is meant by co-ordination paired with an unreflected “pro co-ordination bias” are also present in the current European debate.


Monetary Policy Central Bank Fiscal Policy Price Stability Central Bank Independence 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© Springer Science+Business Media Dordrecht 2001

Authors and Affiliations

  • Bernhard Winkler
    • 1
  1. 1.DG ResearchEuropean Central BankFrankfurtGermany

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