Europe's Economic and
Monetary Union (EMU) is unlike any other case of monetary unification in history. Here,
sovereign countries retain a large degree of fiscal autonomy while monetary policy is
centralised and entrusted to an independent central bank - the European Central Bank -
with a clear mandate to preserve price stability. By bringing together leading scholars
and policy makers this comprehensive book examines and reviews the challenges that are
facing economic policies in the EMU today. Blending theoretical and policy analyses, the
chapters explore and examine the co-ordination of macroeconomic policies to EMU's fiscal
policy rules in view of EU enlargement; the interplay between supply side reforms and
stabilisation policy; the empirics of monetary and fiscal behaviour; policy making under
uncertainty and the international dimension of policy spillovers. This fascinating book
contributes to a deeper understanding of policy interactions in EMU, opening up new
avenues for economic research and policy analysis.
Contents
1. Interactions and
coordination between monetary and fiscal policies in EMU: what are the issues? Marco Buti;
Part I. EMU's Fiscal and Monetary Rules: An Appraisal:
2. One money, but many
fiscal policies in Europe: what are the consequences? Harald Uhlig;
3. The compatibility between
monetary and fiscal policies in EMU Simon Wren-Lewis;
4. Reforming EMU's fiscal
policy rules Willem H. Buiter and Clemens Grafe;
Part II. Policy Making in
EMU:
5. Monetary-fiscal
interactions in an uncertain world: lessons for European policymakers Philip R. Lane;
6. Macroeconomic policy and
structural reform: a conflict between stabilisation and flexibility? Marco Buti, Carlos
Martinez-Mongay, Khalid Sekkat and Paul van den Noord;
Part III. Monetary and
Fiscal Policy Behaviour:
7. How do European monetary
and fiscal authorities behave? Carlo A. Favero;
8. Has EMU shifted monetary
and fiscal policies? Fernando Ballabriga and Carlos Martinez-Mongay;
Part IV. International
Policy Spillovers:
9. New views on the
transatlantic transmission of fiscal policy and macroeconomic policy coordination Matthew
B. Canzoneri, Robert E. Cumby and Behzad Diba.
356 pages