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Monetary and Fiscal Policy in Europe: an Overview

Published online by Cambridge University Press:  26 March 2020

Ray Barrell  and
Nigel Pain
Nigel Pain
Affiliation:
National Institute of Economic and Social Research
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Abstract

There are new monetary and fiscal frameworks in place for the countries in the Euro Area. The European Central Bank has a remit to maintain price level stability in the medium term, and it has developed a two pillar strategy, with interest rates being set in relation to a reference value of M3 and general (inflationary) conditions. We discuss an ideal type representation of this framework and examine the potential effects of a fall in the euro. Fiscal policy in Europe is now based on guidelines from the Stability and Growth Pact and we discuss the role of commitment in this framework as well

Type
Research Article
Information
National Institute Economic Review , Volume 174 , October 2000 , pp. 63 - 67
Copyright
Copyright © 2000 National Institute of Economic and Social Research

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Footnotes

We would like to thank our colleagues Ian Hurst, Karen Dury, Paul Ashworth, Joe Byrne, Florence Hubert and Dawn Holland for their contributions. This work was supported under ESRC Project 1138250122 ‘Fluctuations and Long-Term Prosperity: a study of the UK and International Economies’.

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