Advertisement

Macroeconomic Policy in the EMU

  • Sixten Korkman

Abstract

Macroconomic policy and policy coordination in EMU remain controversial issues. This is not surprising in light of the fundamental policy asymmetry built into EMU: power over monetary policy is delegated to the ECB, thereby centralised in the hands of a highly independent supranational institution. Other economic policies, by contrast, remain a matter for national governments, though subject to the rules of the internal market and the SGP. As noted above, the euro is a ‘currency without a state’ and as such lacks historical precedent. This adds to the pertinence of the basic questions: is this asymmetric policy configuration problematic, perhaps even unsustainable, or is it a matter of little concern, perhaps even desirable? What is the appropriate relation between economic policy decisions of member states and of the euro area as a whole? How should we define the aims and boundaries of policy autonomy, policy discipline and policy coordination?

Keywords

Interest Rate Member State Monetary Policy Central Bank Home Country 
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.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© Sixten Korkman 2005

Authors and Affiliations

  • Sixten Korkman
    • 1
  1. 1.BrusselsBelgium

Personalised recommendations