Economic Integration and Monetary Policy in the EMU

    Project Details


    The project was originally funded by the ESF via the "Regione Calabria". The grant awarded for the research was for 3 years with the total fund divided in three yearly parts. The funded research aimed at establishing the main problems related to the interaction between monetary and fiscal policies in the EMU. The conducted research was both theoretical and empirical in nature.

    Key findings

    - The likelihood of symbiosis between fiscal and monetary policy in currency unions (i.e., the EMU) decreases the higher the debt/to GDP ratio.

    - The minimization of asymmetric shocks between member countries improves the performance of the policy mix and this is very relevant in relation to financial shocks.

    - As a result, the asymmetric impact of financial shocks can endanger the existence of a currency union.

    - The resilience of the EMU requires the implementation of absorbing mechanisms like a well functioning risk-sharing system.
    Effective start/end date1/06/111/06/14