Fiscal policy is coming back into fashion
Article Abstract:
It will be necessary for national finance ministries in member countries of European economic and monetary union to use active fiscal policy to manage their economies in such a way as to complement European monetary policy, which will be controlled by the European Central Bank. This will go against the trend against active fiscal policy which has been seen over recent years. After European monetary union, interest rates will be determined by the European Central Bank and exchange rates will become largely irrelevant. This will mean that fiscal changes will no longer be overshadowed by interest and exchange rate changes.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1998
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Brown wants stability: he has given us stop-go
Article Abstract:
UK Chancellor Gordon Brown's economic policies have produced economic instability, with a period of economic growth now being replaced with a period of slowdown. The current economic problems mean that the disadvantages of joining European monetary union (EMU) are less than those of remaining outside EMU. Brown should set a central rate at which the UK will join EMU, thus prompting the pound to decline. Brown's new fiscal framework is a step towards the EMU Stability Pact, but it is not as stable as it appears.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1998
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The last EMU before global union?
Article Abstract:
An analysis of the long history of monetary unions, or common currencies, gives an interesting insight into the prospects for the success of the European economic and monetary union (EMU). Unlike some forms of monetary union, EMU abolishes national currencies. This makes it hard for members to leave and re-establish their own currency. For this reason, EMU is likely to be more stable that other monetary unions. It is worth considering whether EMU will form the basis for world monetary union.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1999
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