A more stable EMU does not require a central fiscal capacity

Open Access
Authors
Publication date 30-11-2018
Publisher VoxEU
Organisations
  • Faculty of Economics and Business (FEB) - Amsterdam School of Economics Research Institute (ASE-RI)
Abstract A central fiscal capacity is a recurring topic in discussions on reform of the Economic and Monetary Union, but no consensus on the usefulness and necessity of a such a capacity has been reached. This column, part of the Vox debate on euro area reform, argues that the potential stability benefits of a central fiscal capacity can be achieved through stronger financial market risk sharing and more effective use of fiscal stabilisers, without any additional fiscal risk sharing.
Document type Web publication or website
Language English
Published at https://voxeu.org/article/more-stable-emu-does-not-require-central-fiscal-capacity
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