Currency Union And Fiscal Federalism

An overview and the latest research on single currency areas in Europe, the US, and the former USSR.

The pace of economic integration amongst European Union (EU) member states has accelerated considerably during the past decade, highlighted by the process of Economic and Monetary Union (EMU). Many aspects of the EU's apparatus, however, have failed to evolve in order to meets these new challenges. This book explores the issue of fiscal federalism within the context of EU integration from theoretical, historical, policy and global perspectives. It contrasts the pace of integration amongst EU member states with the failure of financial and administrative apparatus to evolve to encompass fiscal federalism, i.e. the development of a centralised budgetary system. This impressive collection, with contributions from a range of internationally respected authors, shall interest students and researchers involved with European economics and economic integration. Its accessible style will also make it extremely useful to policy-makers and professionals for whom European economic integration is a daily topic of conversation.

Estudio sobre la utilidad de las politicas fiscales como instrumento de estabilizacion que favorezca el desarrollo de la Union Economica y Monetaria, y el nivel institucional en el que deberian aplicarse (centralizado / descentralizado). Considera que, aunque las politicas fiscales no son el instrumento mas apropiado para responder a las perturbaciones economicas, son inevitables por razones politicas. En este caso, es partidario de las politicas fiscales descentralizadas porque estan mas disciplinadas por las fuerzas mercado. Contiene bibliografia. (pgp).

Responding to the euro crisis, European leaders have put in place an enhanced economic and financial governance framework for the euro area, including the main pillars of a banking union, while they have initiated work on a capital markets union. This should more effectively secure sound national macroeconomic and fiscal policies, a healthy financial sector and the stability of the euro. This paper poses the question whether the status quo of half-way political integration is sufficient to safeguard the cohesion and integrity of the euro area. National governments still have considerable leeway to circumvent the “hard” budget constraint and the strong market competition implied by the euro area's “holy trinity” (one market, one currency and one monetary policy). For example, they might target captive sovereign debt markets or take protectionist measures. This economic nationalism would entrench the crisis-related fragmentation of the single market and frustrate the efficient functioning of the monetary union. A higher level of market-preserving fiscal federalism could prevent member countries from encroaching on markets and foster sustainable economic convergence towards an optimal currency area.

Provides a comprehensive overview of the Union financial policies during the American Civil War. This work argues that the revenue imperative, the need to keep pace with the burgeoning expenses of the conflict, governed the development of fiscal policy.