Publication
Sep 2011
The Eurozone faces a fourfold challenge: (1) fiscal support: to provide a credible mechanism for supporting countries with high and rapidly rising national debt and high borrowing costs; (2) fiscal responsibility: to ensure that all member states of the Eurozone credibly commit to sustainable levels of national debt; (3) fiscal autonomy: to permit each member state to determine its own fiscal policy; and (4) counter-cyclical fiscal policy: to allow each member state to pursue fiscal stabilization policy, stimulating the economy in a recession and dampening it in a boom.
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English (PDF, 16 pages, 330 KB) |
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Author | Dennis J Snower, Johannes Burmeister, Moritz Seidel |
Series | Kiel Institute Policy Briefs |
Issue | 33 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2011 The Kiel Institute for the World Economy |