Abstract
For European countries, having relinquished their monetary policy autonomy and the possibility of modifying bilateral nominal exchange rates, monetary union has represented a redefinition of the principal instruments associated with stabilization. This has given rise to the problem of the possible loss of stabilization capacity by EMU economies.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Aarle, B. van, H. Garretsen and F. Huart (2004) ‘Monetary and Fiscal Policy Rules in the EMU’, German Economic Review, 5 (4).
Arestis, P. and M. Sawyer (2003) ‘Reinventing Fiscal Policy’, The Levy Economics Institute Working Papers, no. 381.
Bayoumi, T. and B. Eichengreen (1993) ‘Shocking Aspects of European Monetary Integration’, in F. Torres and F. Gaviazzi (eds), Adjustment and Growth in the European Monetary Union. Cambridge: Cambridge University Press.
Blinder, A. (2004) ‘The Case Against the Case Against Discretionary Fiscal Policy’, CEPS Working Papers, no. 100.
Buti, M. and Martínez Mongay (2005) ‘Country Study: Spain in EMU: a Virtuous Long-lasting Cycle?’, Occasional Papers, European Commission, 14
EEAG (2003) ‘Fiscal Policy and Macroeconomic Stabilisation in the Euro Area: Possible Reforms for the Stability and Growth Pact and National Decision-Making Processes’, in Report on the European Economy, CESifo, Munich.
Galí, J. (1998) ‘La política monetaria europea y sus posibles repercusiones sobre la economía espafiola’, Seminar on El euro y sus repercusiones sobre la economía española, Fundación BBV.
Galí, J. and R. Perotti (2003) ‘Fiscal Policy and Monetary Integration in Europe’, NBER Working Papers, 9773.
García Serrador, A., M. J. Arroyo, R. Mínguez and J. Uxó (2005) ‘Estimation of a Fiscal Rule for EMU Countries (1984–2003)’, Second International Conference, Developments in Economic Theory and Policy, Cambridge University and Universidad del País Vasco, Bilbao.
International Monetary Fund (2004) ‘Has Fiscal Behavior Changed under the European Economic and Monetary Union?’, World Economic Outlook, September, 103–24.
Mongelli, F. P. (2002) ‘New Views on the Optimum Currency Area Theory: What is EMU Telling Us?’, ECB Working Papers, 138.
OECD (2003) ‘Fiscal Stance Over the Cycle: The Role of Debt, Institutions and Budget Constraints’, OECD Economic Outlook, no. 74.
Romer, D. (2000) ‘Keynesian Macroeconomics Without the LM Curve’, Journal of Economic Perspectives, 14 (2), 149–169
Taylor, J. B. (1993) ‘Discretion versus Policy Rules in Practice’, Carnegie-Rochester Conference Series on Public Policy, 39.
Taylor. J. B. (1995) Macroeconomic Policy in a World Economy. New York and London: W.W. Norton.
Taylor, J. B. (2000) Reassessing Discretionary Fiscal Policy, Stanford University, accessed at http://www.stanford.edu/~johntayl/Papers/Reassessing+Revised.pdf.
Editor information
Copyright information
© 2007 Jorge Uxó and M. Jesús Arroyo
About this chapter
Cite this chapter
Uxó, J., Arroyo, M.J. (2007). Alternative Fiscal Policy Rules and the Stabilization Problem in EMU: Theory and Simulations. In: Arestis, P., Zezza, G. (eds) Advances in Monetary Policy and Macroeconomics. Palgrave Macmillan, London. https://doi.org/10.1057/9780230800762_8
Download citation
DOI: https://doi.org/10.1057/9780230800762_8
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-28175-6
Online ISBN: 978-0-230-80076-2
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)