Research Topics

Governance and macroeconomic policy in the European Monetary Union

The debt crisis in the euro area has highlighted the need to reform the EMU’s institutional architecture. Although important reforms have been adopted, it is unclear whether they are sufficient to guarantee the stable development of public finances, the banking sector and the economy as a whole. The division of responsibility between monetary and fiscal policy is often the subject of conflict. The coordination and supervision of economic and fiscal policy in the framework of the Stability and Growth Pact is not effective enough, and rule violations go unpunished.

For these reasons, EconPol Europe’s research focuses on these questions:

  • What are the impacts of fiscal policy in the current economic situation (high private and public sector debt, low interest rates and slow economic growth)?
  • Is the Stability and Growth Pact suitable as a framework for the coordination of fiscal policy in Europe? If reform is needed, how should these reforms be implemented?
  • What are the advantages and disadvantages of setting up fiscal stabilisers at the European level (for example, with a European unemployment re-insurance scheme)?

Publications

Tamborini, Roberto, Università di Trento, "Europe at the interdependence war", September 2017.

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Tamborini, Roberto, "Why are macroeconomic imbalances so important for the European Monetary Union?", EconPol Policy Brief 2, August 2017.

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Farhi, Emmanuel and Tirole, Jean, "Deadly Embrace: Sovereign and Financial Balance Sheets Doom Loops", EconPol Working Paper 1, August 2017.

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Gabriel Felbermayr, Clemens Fuest and Timo Wollmershäuser, "The German Current Account Surplus: Where Does It Come From, Is It Harmful and Should Germany Do Something about It?", EconPol Policy Report 2, 2017.

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Delatte, Anne-Laure, Clemens Fuest, Daniel Gros, Friedrich Heinemann, Martin Kocher and Roberto Tamborini, "The Future of Eurozone Fiscal Governance", EconPol Policy Report 1, June 2017.

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