The Effects of the European Economic and Monetary Union (EMU)on National Fiscal Sustainability
The Effects of the European Economic and Monetary Union (EMU)on National Fiscal Sustainability

Author: Mr.Francesco P. Mongelli

Publisher: International Monetary Fund

Published: 1996-07-01

Total Pages: 47

ISBN-13: 145184929X

DOWNLOAD EBOOK

This paper presents a methodology to analyze the responsiveness of fiscal sustainability to the “endogenous fiscal discipline” that will be strengthened by the EMU. This discipline arises in response to the harmonization of tax systems, the loss of control of current and prospective money financing, and the deepening of financial market-based discipline. The model used in this paper is a generalization of Blanchard’s (1984) model, in which the interest rate is determined endogenously. This provides the framework to analyze more features of the linkage between sustainability and endogenous fiscal discipline. This paper also presents a new intratemporal fiscal sustainability index.

Effects of the European Economic and Monetary Union (EMU) on Taxation and Interest Spending of National Governments
Effects of the European Economic and Monetary Union (EMU) on Taxation and Interest Spending of National Governments

Author: Francesco P. Mongelli

Publisher: International Monetary Fund

Published: 1997-07

Total Pages: 42

ISBN-13:

DOWNLOAD EBOOK

The current members of the European Union (EU) are becoming increasingly integrated from an economic and financial standpoint. In the coming years, some EU members may also establish the European Economic and Monetary Union (EMU) and adopt a common single currency, the euro. While integration was deepening, the fiscal performance of most EU members gradually deteriorated leading to higher, albeit uneven, public indebtedness. How could the EMU affect the public finances of the participating countries?

Effects of the European Economic and Monetary Union (EMU) on Taxation and Interest Spending of National Governments
Effects of the European Economic and Monetary Union (EMU) on Taxation and Interest Spending of National Governments

Author: Mr.Francesco P. Mongelli

Publisher: International Monetary Fund

Published: 1997-07-01

Total Pages: 37

ISBN-13: 1451951272

DOWNLOAD EBOOK

This paper examines the interest spending and taxation channels through which EMU could affect the public finances. It provides a framework for examining different views on a further narrowing of interest rate differentials. A model of Blanchard and Fischer is amended to analyze the two channels, and empirical evidence on the tax harmonization process is presented. The paper argues that “high-debt” and “high-tax” countries pursuing prudent fiscal policies could benefit the most from EMU: if monetary and widespread fiscal discipline are jointly established, interest rates could decline rapidly, while tax harmonization is likely to be gradual.

Fiscal Policy in the European Union
Fiscal Policy in the European Union

Author: Jesus Ferreiro

Publisher: Palgrave MacMillan

Published: 2008-11-27

Total Pages: 248

ISBN-13:

DOWNLOAD EBOOK

"This book offers a comprehensive analysis of current national fiscal policies in the European Union and European Monetary Union, and provides insights into the consequences of these fiscal policies on economic activity. With contributions from a range of experts, the book focuses on the coordination problems between the single monetary policy and national fiscal policies, and the negative impact on the capacity of fiscal policy to correct short-term economic fluctuations and to accelerate economic growth in the long-term in European economies. This book is an essential read for all interested in the role of fiscal policy in the European Union."--BOOK JACKET.

One Market, One Money
One Market, One Money

Author: Michael Emerson

Publisher:

Published: 1992

Total Pages: 356

ISBN-13: 9780198773245

DOWNLOAD EBOOK

The European Community is negotiating a new treaty to establish the constitutional foundations of an economic and monetary union in the course of the 1990s. This study provides the only comprehensive guide to the economic implications of economic and monetary union. The work of an economist inside the Commission of the European Community, it reflects the considerations influencing the design of the union. The study creates a unique bridge between the insights of modern economic analysis and the work of the policy makers preparing for economic and monetary union.

Political and Economic Consequences of Economic and Monetary Union
Political and Economic Consequences of Economic and Monetary Union

Author: Amy Verdun

Publisher:

Published: 2007

Total Pages: 0

ISBN-13: 9781600219085

DOWNLOAD EBOOK

With the creation of Economic and Monetary Union (EMU) in the European Union (EU), now eight years ago, it is time to start to look back and reflect on the time that has passed and the challenges and opportunities that lie ahead. Created on 1 January 1999 with banknotes and coins introduced into the marketplace on 1st of January 2002 EMU has been heralded by many as an unprecedented success of economic and monetary integration. Many have focused on the sheer size of the project: twelve European Union member states introduced banknotes and coins in 2002 as legal tender replacing their previous national currencies, many of which had been around for centuries. As of 1st of January 2007 Slovenia is the newest country to join. Another remarkable feat was the fact that a new European Central Bank (ECB) was created to formulate a single monetary policy for the eurozone. At the same time EMU leaves responsibility for budgetary and fiscal policies to national governments who still decide the level of expenditure and of

Economic Convergence in the Euro Area: Coming Together or Drifting Apart?
Economic Convergence in the Euro Area: Coming Together or Drifting Apart?

Author: Mr.Jeffrey R. Franks

Publisher: International Monetary Fund

Published: 2018-01-23

Total Pages: 47

ISBN-13: 1484338499

DOWNLOAD EBOOK

We examine economic convergence among euro area countries on multiple dimensions. While there was nominal convergence of inflation and interest rates, real convergence of per capita income levels has not occurred among the original euro area members since the advent of the common currency. Income convergence stagnated in the early years of the common currency and has reversed in the wake of the global economic crisis. New euro area members, in contrast, have seen real income convergence. Business cycles became more synchronized, but the amplitude of those cycles diverged. Financial cycles showed a similar pattern: sychronizing more over time, but with divergent amplitudes. Income convergence requires reforms boosting productivity growth in lagging countries, while cyclical and financial convergence can be enhanced by measures to improve national and euro area fiscal policies, together with steps to deepen the single market.