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Fiscal constraints and financial regulation in economic and monetary union
Author(s) -
Whittaker John
Publication year - 1998
Publication title -
economic affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.24
H-Index - 18
eISSN - 1468-0270
pISSN - 0265-0665
DOI - 10.1111/1468-0270.00076
Subject(s) - economics , centralisation , fiscal union , economic and monetary union , convergence (economics) , obligation , function (biology) , monetary economics , fiscal policy , control (management) , monetary policy , macroeconomics , international economics , economic policy , european union , market economy , political science , management , evolutionary biology , biology , law
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.