Abstract
The Economic and Monetary Union (EMU) has a clear set of monetary and fiscal policies associated with the Stability and Growth Pact (SGP). We argue here that those policies have to be understood by reference to a particular macroeconomic analysis. Specifically, it is argued that the macroeconomic policy framework for fiscal and monetary policy with EMU is embedded in what is now known as the ‘New Consensus Macroeconomics’.1 Any specific macroeconomic analysis puts forward a view of how the economy operates, what are the issues which policy can and should address, and the effectiveness (or otherwise) of particular policies (for development of this argument at a general level see Arestis and Sawyer, 2010a), and the New Consensus Macroeconomics is no exception.
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© 2013 Philip Arestis and Malcolm Sawyer
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Arestis, P., Sawyer, M. (2013). The Economic and Monetary Union Model: Theoretical Underpinnings of Macroeconomic Policy. In: Economic and Monetary Union Macroeconomic Policies. Palgrave Macmillan, London. https://doi.org/10.1057/9781137317896_3
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DOI: https://doi.org/10.1057/9781137317896_3
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-31257-3
Online ISBN: 978-1-137-31789-6
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)