01696cas a2200241 a 4500 AALejournalIMF007784 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451920918 1018-5941 BD-DhAAL BD-DhAAL International Monetary Fund. Fiscal Policy Independence in a European Monetary Union. Washington, D.C. : International Monetary Fund, 1990. 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 The issue of whether constraints should be placed on fiscal policies when moving to European monetary union is examined in the context of the use of fiscal policy for macroeconomic stabilization purposes. Examples of shocks hitting French and German economies are considered: an appreciation of their joint exchange rate against other currencies, an inflation shock, and an oil price increase. Except in the third case, flexible use of fiscal policies in the two countries is likely to give better outcomes than a system with constraints on their use. For the oil price shock, there seems to be a good case for policy coordination, not for ceilings on fiscal deficits. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1990/024 Full text available on IMF http://elibrary.imf.org/view/journals/001/1990/024/001.1990.issue-024-en.xml IMF e-Library