Elastyczność polityki fiskalnej w Unii Walutowej

Abstract

The discussion of the need to formally coordinate fiscal policies in monetary union member countries lacks a framework to assess the feasibility of different limits and requirements imposed on public finance at the member-country level. The main argument raised by opponents to a multi lateral supervision is that it allows for n o flexibility in conducting fiscal policy. A lack of this flexibility makes a response to asymmetric shocks impossible and increases differences in business cycle phases among monetary union member countries . This paper offers a framework to assess and compare fiscal policy flexibility underavariety of different fiscal constraints and their levels.