Fiscal integration and growth stimulation in Europe (with an appendix by Jacques Drèze and Jean-François Carpantier)
Jacques Dréze et al.
What the paper says
The current crisis of the Economic and Monetary Union (EMU) combines\nfinancial, economic and political difficulties that confirm the incompleteness\nof economic integration in the euro area and could even question the sustainability of the EMU itself.\nThe current debate on crisis resolution underscores the importance of macroeconomic uncertainties. Indeed, the current crisis was not really anticipated, and short-to-medium term macroeconomic developments in Europe remain highly uncertain today. Although the current crisis has taken its roots in financial markets – due to excessive risk-taking behaviour by intermediaries and investors under inadequate monitoring – its macroeconomic impact today puts downward pressures on both the economic outlook and the public finances for the whole euro area. This reveals the urgency of deepening economic integration, a need that remained masked by the favourable developments until 2007, but that cannot be ignored by a set of countries no longer apt to rely on currency devaluation as an adjustment mechanism.
2 citations
Evidence weight
Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40
| F · citation impact | 0.26 × 0.4 = 0.11 |
| M · momentum | 0.20 × 0.15 = 0.03 |
| V · venue signal | 0.50 × 0.05 = 0.03 |
| R · text relevance † | 0.50 × 0.4 = 0.20 |
† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.