Fiscal Integration and Growth Stimulation in Europe

Jacques Dreze, Alain Durré () and Jean-François Carpantier

Post-Print from HAL

Abstract: With the current sovereign debt crisis, the incompleteness of economic integration in the Economic and Monetary Union (EMU) has become patent, leading to an intense debate among academics and policy makers. Much of the debate concerns fiscal rules and austerity measures, both of which weigh on growth prospects. In this paper we look at the main structural shortcomings of EMU through the lens of general equilibrium theory. We address two issues (international sharing of macroeconomic risks and coordinated growth stimulation) which are at the heart of the sustainability of EMU. We propose : (A) a specific scheme for mutual insurance of macroeconomic risks ; (B) locating responsibility for demand policies at the EMU level, with ambitious investment programs (public, or fiscally-neutral private) as main instrument. JEL Classification : E24, E63, H63.

Keywords: general equilibrium model; risk sharing; growth stimulation; fiscal integration; indexed bonds (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations:

Published in Recherches économiques de Louvain, 2014, 80 (2), pp.5-45

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Fiscal Integration and Growth Stimulation in Europe (2014)
Working Paper: Fiscal integration and growth stimulation in Europe (2013)
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:hal:journl:hal-01821135

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().