Is a unified macroeconomic policy necessarily better for a common currency area?

Ansgar Belke and Daniel Gros

European Journal of Political Economy, 2009, vol. 25, issue 1, pages 98-101

Abstract: It is widely assumed that a common currency makes it desirable to have also a common fiscal policy. However, if fiscal policy is a source of shocks, independent national fiscal policies are generally preferable because they allow risk diversification.

Keywords: Currency; union; Fiscal; policy; coordination; Stabilisation (search for similar items in EconPapers)
Date: 2009

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Persistent link: http://EconPapers.repec.org/RePEc:eee:poleco:v:25:y:2009:i:1:p:98-101

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