Description

This book is geared towards an assessment of fiscal policy coordination in the European Economic and Monetary Union (EMU). I essentially investigate the question which major flaws of the coordination arrangements and the institutional architecture of the EMU have been contributing to the Eurozone crisis. To that end, I follow a dual track approach. On the one hand I undertake a literature review assessing the actual conduct of fiscal policy coordination in the EMU. On the other hand I study fiscal policy coordination from a more analytical and theoretical perspective in terms of discussing and evaluating economic models that deal with fiscal policy coordination. Both approaches although from different angles let me arrive at similar conclusions: more comprehensive coordination of fiscal policy is expected to be beneficial to sound public finances in particular and to welfare in the EMU in general. The book mainly represents a reproduction of my diploma thesis.