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The Precarious Fiscal Foundations of EMU

De Economist volume 147, pages 415–436 (1999)Cite this article

Abstract

After a brief overview of the fiscal theory of the price level, we consider the insights it provides into monetary policy formation under certain kinds of deflationary and inflationary stress. Then we consider how the institutions of the EMU are equipped – or unequipped – to deal with such stress. The conclusion is that fiscal institutions as yet unspecified will have to arise or be invented in order for EMU to be a long-term success.

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Authors
  1. Christopher A. Sims
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Sims, C.A. The Precarious Fiscal Foundations of EMU. De Economist 147, 415–436 (1999). https://doi.org/10.1023/A:1003819626903

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  • DOI: https://doi.org/10.1023/A:1003819626903

Keywords

  • Monetary Policy
  • International Economic
  • Public Finance
  • Price Level
  • Policy Formation