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Fiscal policy under alternative monetary policy regimes

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Diaz-Roldan C., Monteagudo-Cuerva C.
Business and Economic Horizons
|
2013
|
vol. 9
|
issue 2
1-9
EN
In the particular policy framework of a monetary union, the management of fiscal policy becomes an issue of special relevance, because the fiscal discipline imposed by the monetary agreements could limit the scope of stabilization fiscal policies, and its implications on economic growth. Therefore, is not trivial to manage fiscal policy in such particular economic framework. In this paper we will review the implications of fiscal policy in open economies. But we will pay special attention to the particular case of monetary unions, in order to show the relevance of the macroeconomic model behind economic policy decisions.
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