Reorganizing European fiscal policy is a main topic in current reform considerations. In particular, the creation of a European stabilization mechanism is being discussed. This study examines the macroeconomic effects of a stabilization fund, the economic consequences of which are analyzed in an...

No country in Europe is safe from a recession. A stabilization fund which member states pay into while the economy is strong and from which they receive grants during downturns can improve welfare in individual euro area countries. The fund should be structured in such a way that permanent...

In the twelve months preceding the conclusion by the EFTA countries and the EC of the agreement on the establishment of a common European Economic Area in October 1991, the three Scandinavian EFTA members - Norway, Finland and Sweden - decided to tie their currencies to the ECU. What objectives...