01869cas a2200241 a 4500 AALejournalIMF004396 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451849523 1018-5941 BD-DhAAL BD-DhAAL Berthold, Norbert. Fiscal Federalism in Europe : Is it a Necessary Precondition for a Successful European Economic and Monetary Integration? / Norbert Berthold. Washington, D.C. : International Monetary Fund, 1994. 1 online resource (24 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 An important question in the process of European integration concerns the best institutional level for stabilization policies. The theory of fiscal federalism gives criteria for evaluating if fiscal stabilization policies should take place on a centralized or on a decentralized level. This paper firstly discusses the usefulness of such policies. It reaches the conclusion that fiscal stabilization polices are in general not the adequate way of responding to shocks. However, since fiscal stabilization policies appear to be unavoidable for political reasons, the paper secondly discusses on which institutional level such policies should be located. Decentralized fiscal stabilization policies are preferable because they are disciplined more by market forces. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1994/074 Full text available on IMF http://elibrary.imf.org/view/journals/001/1994/074/001.1994.issue-074-en.xml IMF e-Library