01766cas a2200253 a 4500 AALejournalIMF007548 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451975550 1018-5941 BD-DhAAL BD-DhAAL Cangiano, M. Will Fiscal Policy Be Effective Under EMU? / M. Cangiano, Eric Mottu. Washington, D.C. : International Monetary Fund, 1998. 1 online resource (32 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 European Economic and Monetary Union does not envisage creating a central fiscal authority. Monetary and exchange rate policies will be centralized, but fiscal policy will remain a national responsibility, in line with the subsidiarity principle. This paper argues that monetary union will generate pressures for closer economic integration than currently envisaged. Although not a necessity, a more active central role could then be justified on the grounds of allocative efficiency, redistribution, and stabilization. While in the short term enhanced policy coordination may address those pressures satisfactorily, as economic integration proceeds, the case for a central fiscal authority may become stronger. Mode of access: Internet Mottu, Eric. IMF Working Papers; Working Paper ; No. 1998/176 Full text available on IMF http://elibrary.imf.org/view/journals/001/1998/176/001.1998.issue-176-en.xml IMF e-Library