Such an exceptional event as the creation of the EMU and the euro has not had happened never before. The most common … challenges concerning EMU and the euro are: fiscal policy making, monetary policy making, euro area being a non-optimal currency … area and the political legitimacy of EMU. It is worthwhile stressing that economic policies except from monetary policy are …

The coexistence in EMU of one common monetary policy and several domestic fiscal policies raises a number of problems … policy spill-overs are enhanced in the EMU, the need to avoid free riding behaviour on the part of member states and the … economic area, or that do not equally affect all EMU members. Theory suggests that financial markets, when integrated, can …

We study the evolution of the response of fiscal policy to monetary policy shocks in the EMU in the light of two … important events: the signing of the Maastricht treaty in 1992 and the introduction of the EMU in 1999. Based on impulse … policy acted as complements after the introduction of the EMU. These results holds for a set of 11 non-EMU countries as well …