Fiscal stabilisation policy in the EMU. An insight from the theory of optimum currency areas
Year: 2020
Type: article
Abstract: The aim of the paper is to examine the role and place of the fiscal stabilisation policy in the European Monetary Union (EMU) from the perspective of the theory of optimum currency areas (OCA). We examine the theoretical underpinning for the policy to mitigate the economic fluctuations in a monetary union, and answer the questions of whether fiscal integration is a prerequisite for the “optimality” of a currency area and at what level of governance a stabilising fiscal policy should be conducted. We conclude with a short revision of how OCA theory is applied to the project of monetary and economic integration in the European Union (EU) and some conclusions for future development and research.
Source: Ekonomia Międzynarodowa
Author: Małgorzata Misiak
Institution: University of Łódź
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W3122584529