Fiscal Policy Coordination in the EMU: Theory and Practice

This book is geared towards an assessment of fiscal policy coordination in the European Economic and Monetary Union (EMU). I essentially investigate the question which major flaws of the coordination arrangements and the institutional architecture of the EMU have been contributing to the Eurozone crisis. To that end, I follow a dual track approach. On the one hand I undertake a literature review assessing the actual conduct of fiscal policy coordination in the EMU. On the other hand I study fiscal policy coordination from a more analytical and theoretical perspective in terms of discussing and evaluating economic models that deal with fiscal policy coordination. Both approaches - although from different angles - let me arrive at similar conclusions: more comprehensive coordination of fiscal policy is expected to be beneficial to sound public finances in particular and to welfare in the EMU in general. The book mainly represents a reproduction of my diploma thesis.