01863cas a2200265 a 4500 AALejournalIMF001730 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451858952 1018-5941 BD-DhAAL BD-DhAAL Beetsma, Roel. Is Fiscal Policy Coordination in EMU Desirable? / Roel Beetsma, Xavier Debrun, Franc Klaassen. Washington, D.C. : International Monetary Fund, 2001. 1 online resource (46 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students It is widely argued that Europe's unified monetary policy calls for international coordination at the fiscal level. We survey the issues involved in such coordination in the perspective of macroeconomic stabilization. A simple model identifies the circumstances under which coordination may be desirable. Coordination is beneficial when the cross-country correlation of the shocks is low. However, given the potentially adverse reaction by the ECB (as a result of free-riding or a conflict on the orientation of the policy mix), fiscal coordination is likely to prove counterproductive when demand or supply shocks are highly symmetric across countries and the governments are unable to acquire a strategic leadership position vis-a-vis the ECB. Mode of access: Internet Debrun, Xavier. Klaassen, Franc. IMF Working Papers; Working Paper ; No. 2001/178 Full text available on IMF http://elibrary.imf.org/view/journals/001/2001/178/001.2001.issue-178-en.xml IMF e-Library