The countdown for establishing economic and monetary union (EMU) in Europe has started and the countries of the European Union are practically on automatic pilot. Nevertheless, some nagging questions still have to be addressed concerning the design of the project and the possibility that, if not...

The countdown for establishing economic and monetary union (EMU) in Europe has started and the countries of the European Union are practically on automatic pilot. Nevertheless, some nagging questions still have to be addressed concerning the design of the project and the possibility that, if not...

This paper considers two kinds of issues facing EMU. One concerns qualifications and membership: how qualifications are evaluated and which member states are likely to meet the criteria set for membership in the third stage of EMU in 1999. The other concerns the capacity of member states,...

IN DECEMBER 2004, the new Barroso Commission brought the saga of the French and German infringements of the Stability and Growth Pact to a close by lifting the "excessive deficit" procedure launched in 2003. That same month, the Commission launched infringement proceedings against Greece that...

This paper argues that when EU member states joined EMU, this resulted in domestic institutional changes in the areas of fiscal policy-making and wage-setting. The paper argues that these changes were triggered by two facts: (i) in EMU, the monetary policy can no longer be used as an instrument...

[From the Introduction]. With only two more years to run on the European Community's (EC) 1992 single market program, European leaders have been seeking for the last several years to develop and specify a range of extensive proposals to enhance the benefits of an integrated market. One principal...

[From the Introduction]. With only two more years to run on the European Community's (EC) 1992 single market program, European leaders have been seeking for the last several years to develop and specify a range of extensive proposals to enhance the benefits of an integrated market. One principal...

This paper argues that when EU member states joined EMU, this resulted in domestic institutional changes in the areas of fiscal policy-making and wage-setting. The paper argues that these changes were triggered by two facts: (i) in EMU, the monetary policy can no longer be used as an instrument...

This paper investigates the rationales for fiscal rules in a monetary union, such as the Stability and Growth Pact (SGP), which has been adopted in the European Union (EU). Rationales for rules in fiscal policy have been found linked to the existence of externalities in a monetary union, which...

We present a game that first models the relationship among a population, a government and a watchdog. The focus is on the incentives that the government faces when making fiscal policy decisions. The population has incomplete information about the type of government that is in office, but an...