01734cas a2200241 a 4500 AALejournalIMF010158 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451928815 1018-5941 BD-DhAAL BD-DhAAL International Monetary Fund. The Relevance of Fiscal Conditions for the Success of European Monetary Integration. Washington, D.C. : International Monetary Fund, 1989. 1 online resource (30 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 paper argues that international differences in fiscal conditions influence the relative attractiveness of locating production facilities in different countries and could prove to be a troublesome source of instability for the European economies. Even though physical capital movements tend to occur slowly, divergent fiscal conditions can exert pressures on exchange rates in the short run, and the monetary policy reactions induced in a fixed exchange rate regime may affect real wage rates and/or employment levels. The implications for tax harmonization and budget discipline are discussed. It is argued that monetary integration itself will not induce fiscal discipline. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1989/006 Full text available on IMF http://elibrary.imf.org/view/journals/001/1989/006/001.1989.issue-006-en.xml IMF e-Library