Fiscal Consolidations, but When? Italy and EMU Enlargement

Frank Bohn

Economics Discussion Papers from University of Essex, Department of Economics

Abstract: By using a multi-country simulation model this paper analyses the qualitative effects both of contractionary fiscal policies and of joining a monetary union. It is shown that - under certain macroeconomic conditions - both policy changes should happen at the same time. Given that these conditions exist in prospective future member countries of the European Monetary Union (EMU) it is argued that fiscal consolidations (if required) should not have to be completed prior to joining the EMU. The case of Italy becoming a member of the EMU is used to illustrate this argument.

Keywords: transition to a monetary union, fiscal policy, European Monetary Union; regime change; simulation; MULTIMOD (search for similar items in EconPapers)
Date: 2002
References: Add references at CitEc
Citations:

Downloads: (external link)
https://repository.essex.ac.uk/8846/ original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:esx:essedp:8846

Ordering information: This working paper can be ordered from
Discussion Papers Administrator, Department of Economics, University of Essex, Wivenhoe Park, Colchester CO4 3SQ, U.K.

Access Statistics for this paper

More papers in Economics Discussion Papers from University of Essex, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Essex Economics Web Manager ().