Is a unified macroeconomic policy necessarily better for a common currency area?
It is widely assumed that a common currency makes it desirable to have also a common fiscal policy. However, if fiscal policy is a source of shocks, independent national fiscal policies are generally preferable because they allow risk diversification.
Year of publication: |
2009
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Authors: | Belke, Ansgar ; Gros, Daniel |
Published in: |
European Journal of Political Economy. - Elsevier, ISSN 0176-2680. - Vol. 25.2009, 1, p. 98-101
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Publisher: |
Elsevier |
Keywords: | Currency union Fiscal policy coordination Stabilisation |
Saved in:
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