Fiscal constraints and financial regulation in economic and monetary union |
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| Authors: | John Whittaker |
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| Institution: | John Whittaker is Senior Lecturer in the Department of Economics, University of Lancaster. Helpful comments from V. Balasubramanyam, S. Bradley, K. Dowd, D. Ellison, D. Schoenmaker and N. Schnadt are gratefully acknowledged. |
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| Abstract: | It is already well understood that economic and monetary union (EMU) will imply the centralisation of much of economic policy, including the setting of the euro interest rate and restrictions on the fiscal freedom of participating countries. In this article it is argued that fiscal harmonisation will go further than an obligation to adhere to the deficit limit of the'convergence criteria': It is also deduced that central control over the regulation of financial institutions will be necessary for EMU to function. |
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