How to Redesign the Fiscal Regime of the Eurozone: An Alternative Take on Lessons from US and Eurozone Experiences

76 Pages Posted: 12 Mar 2019

See all articles by Jörg Bibow

Jörg Bibow

Skidmore College - Department of Economics; Bard College - Levy Economics Institute

Date Written: February 15, 2019

Abstract

This Working Paper examines options for the design of a workable fiscal union for the euro area. It provides a comparative study of fiscal institutions in the US and euro area in order to supply lessons from the operation of the US fiscal regime that could inform the design of the, hitherto dysfunctional, euro regime. The paper argues that common, rather than asymmetrical, shocks are the norm in the euro area and that the euro’s institutions are seriously deficient in dealing with area-wide recession and systemic financial crises.

Keywords: EMU; euro; fiscal policy; currency; financial market; monetary policy; EU countries; USA

Suggested Citation

Bibow, Jörg, How to Redesign the Fiscal Regime of the Eurozone: An Alternative Take on Lessons from US and Eurozone Experiences (February 15, 2019). ETUI Research Paper - Working Paper 2019.02, Available at SSRN: https://ssrn.com/abstract=3350977 or http://dx.doi.org/10.2139/ssrn.3350977

Jörg Bibow (Contact Author)

Skidmore College - Department of Economics ( email )

Saratoga Springs, NY 12866
United States

Bard College - Levy Economics Institute ( email )

Blithewood Rd
Annandale on Hudson, NY 12504
United States

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