Differential requirements for seigniorage provide a weak case for retaining monetary independence. As regards adjustment to asymmetric shocks, nominal exchange rate flexibility is at best a limited blessing and at worst a limited curse. Absence of significant fiscal redistribution mechanisms...

This paper examines the impact of the Economic and Monetary Union (EMU) on the fiscal performance of EU member states. I will show that the process towards EMU and the accompanying Stability and Growth Pact (SGP) have increased fiscal performance in the EU member states. Small EU states have...

The suspension of the fiscal rules in Europe and the enactment of NGEU provide an opportunity to rethink the inherited budget orthodoxy. The issue at stake is not only of political economy and institutional changes in the EU. It is also of economic analysis and theory. The coronavirus crisis...