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A. Dixit and L. Lambertini, “Monetary-Fiscal Policy Interaction and Commitment versus Discretion in a Monetary Union,” European Economic Review, Vol. 45, No. 4-6, 2001, pp. 977-987. doi:10.1016/S0014-2921(01)00134-9.

has been cited by the following article:

  • TITLE: Discretionary Fiscal Policy and the European Monetary Union

    AUTHORS: Jason Jones

    KEYWORDS: Fiscal Policy; Policy Interaction; EMU

    JOURNAL NAME: Modern Economy, Vol.3 No.6, October 31, 2012

    ABSTRACT: A model of circumstances that can lead to changes in the way a fiscal authority conducts policy after joining a monetary union is presented and empirically tested for the euro area. According to the model consolidation fatigue, shock asymmetry, or differences in the relative weight placed on output/price stabilization between the new and old monetary authority can lead to greater reliance on fiscal policy. Empirical evidence suggests that there has been a change in the conduct of fiscal policy in the euro area which is most likely due to consolidation fatigue and a stronger emphasis on price stabilization by the European Central Bank.

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