Oksanen, Heikki - In: CESifo economic studies : CESifo, a joint initiative of … 62 (2016) 2, pp. 332-375
The euro area will not have a centralized budget, and smoothing of country-specific asymmetric shocks via private financial markets will develop only slowly. Mistrust among the governments has caused rigid, even pro-cyclical, fiscal policies. Smoothing mechanisms are absent due to the fear that...
