Fiscal prerequisites for further monetary convergence in the EMS
DOI:
https://doi.org/10.13133/2037-3643/10844Keywords:
EMS, monetary convergence, fiscal divergenceAbstract
The EMS was established as part of a comprehensive strategy to achieve economic stability throughout the EC, based on convergence through the elimination of regional disparities. To date, monetary convergence has been achieved but fiscal divergence remains a feature of Europe as sovereign states follow sovereign policies. This paper develops a model to examine the dynamic interactions between exporters and domestic producers, taking account of exchange rate changes, and warns that the problem of fiscal imbalance must be addressed.
JEL: F15, F36
References
BINI SMAGHI, L. - VONA, S. (1988), "Economie Growth and Exchange Rates in the
EMS: Their Trade Effeets in a Changing External Environment", in The
European "Monetary System, F. Giavazzi - S. Micossi - M. Miller eds.,
Cambridge University Press, Cambridge.
BINI SMAGHI, L. - VONA, S. (1989), "The Effeets of Economie Convergence and
Competitiveness on Trade among the EMS Countries", in Macroeconomic
Policy and Economie Interdependence, D. Hodgman - G. Woods eds.,
Macmillan, London.
BINI SMAGHI, L. - MASERA, R.S. (1987), "L'evoluzione degli Accordi di cambio
dello SME: marzo 1979-marzo 1987", in L'unificazione monetaria e lo SME,
R.S. MASERA, Il Mulino, Bologna.
BRANSON, W. (1988), International Adjustment and the Dollar: Policy Illusions and
Economie Constraints, mimeo.
BRANSON, W. - BUITER, W. (1983), "Monetary and Fiscal Policy with Flexiblc
Exchange Rates", in Economie lnterdependence and Flexible Rates, J. Bhandari
- R. Putnam eds., MIT Press, Cambridge, Massachusetts.
BRANSON, W. - HENDERSON, D. (1985), "Thc Spccification and Influenee of Asset
Markets", in Handbook 01 lnternational Economics, R. Jones - P. Kenen eds.,
voI. 2, North Holland, Amsterdam.
BUITER, W. (1986), "Fiscal Prerequisites for a Viablc Managed Exchange Rate
Regime: A non Technical Eclectic Introduction", CEPR Discussion Paper, No.
CER (1988), Lo 5ME dieci anni dopo, Report No.4, Rome.
CESARANO, F. (1985), "On the Viability of Monetary Unions",Journal of Intemational
Economies, No. 19, pp. 367-374.
COHEN, R. - WYPLOSZ, C. (1988), The European Monetary Union: an Agnostic
Evaluation, mimeo.
CORDEN, W. (1977), Inflation, Exchange Rates and the World Economy, Clarendon
Press, Oxford.
DE GRAUWE, P. (1987), Fiscal Policies in the EMS, A Strategie Analysis, mimeo.
DE CECCO, M. (1988), "Il Sistema Monetario Europeo e gli interessi nazionali", in
L'economia politica dell'integrazione europea, P. Guerrieri - P.C. Padoan eds.,
Il Mulino, Bologna.
DORNBuscH, R. (1988), "The EMS, the Dollar and the Yen", in The Eur0p'ean
Monetary System, F. Giavazzi - S. Mieossi - M. Miller eds., Cambndge
University Press, Cambridge.
DRAZEN, A. - HELPMAN, E. (1986), "Inflationary Consequences of Anticipated
Macroeconomic Policics", NBER Working Paper, No. 2006.
GALLI, G. - MASERA, R.S. (1988), Pisca! Responsibility, Monetary Policy and the
Exchange Rate, prescnted at the conferencc "Value and CapitaI, Fifty Years Later", Bologna, Settembre.
Downloads
Published
How to Cite
Issue
Section
License
