Publication

This paper discusses the need for macroeconomic coordination in the EU. While there is a consensus that soft coordination with exchange of information and general guidelines for economic policy is useful, the author argues that whether stabilization policies should be coordinated is another matter. He holds that commitments by policymakers are almost impossible, fiscal policies may not be effective and negative spillovers are unlikely. Therefore, he concludes that the arguments for an ex ante coordination of macro policies are weak.