Fiscal Dimensions of Emu

The issue of fiscal policy in a monetary union has once again become very topical, as the EU deadline for EMU approaches and as countries take seriously the need to meet the Maastricht fiscal criteria - but are by no means certain to succeed in attaining them by the time a first decision on particip...

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Bibliographic Details
Published in:The Economic journal (London) 1996-07, Vol.106 (437), p.996-1004
Main Author: Masson, Paul R.
Format: Article
Language:English
Subjects:
Budget deficits
Central banks
Cyclical deficit
Debt ceiling
Economic development
Economic theory
Europe
European monetary union
European monetary unit
Federal budget deficit
Fiscal policy
Government
Gross domestic product
Inflation
Interest rates
Manycountries
Monetary policy
Monetary unions
Policy co-ordination
Policy Forum: Economic and Monetary Union in Europe
Public debt
Studies
Citations: Items that cite this one
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Summary:The issue of fiscal policy in a monetary union has once again become very topical, as the EU deadline for EMU approaches and as countries take seriously the need to meet the Maastricht fiscal criteria - but are by no means certain to succeed in attaining them by the time a first decision on participation is made. Moreover, Germany has thrown open the issue of whether the fiscal criteria are adequate to ensure the needed discipline, and has proposed more ambitious targets and monetary sanctions for non-compliance with the 3% deficit ceiling. The following topics are addressed: 1. the debt and deficit criteria as conditions for qualifying for EMU membership, 2. the need for fiscal discipline and policy coordination in EMU, and the role of the criteria in achieving them, and 3. the desirability of, and prospects for, creating a supranational fiscal authority in the EU to accompany monetary union.
ISSN:0013-0133
1468-0297
DOI:10.2307/2235372