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Fiscal aspects of monetary integration

Article Abstract:

The importance of fiscal issues is investigated in the formation of a monetary union, especially the European Monetary Union (EMU). A conceptual framework upholds the Maastricht Treaty's emphasis on fiscal requirements. The Maastricht Treaty sets the regulations for the EMU. However, the emphasis is exaggerated since the provisions for the European Central Bank guarantees the independence of the institution. It cannot subsidize governments and cannot ask or accept guidance.

European Monetary System

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Reconsidering the fiscal role of government

Article Abstract:

The fiscal roles of government have become increasingly complicated as society ages and becomes globalized. Reevaluation of these fiscal roles only proves their importance as partners of the market system. They are also essential in serving the aims of a fair society and making the economy run efficiently. For example, fiscal functions are important in solving distribution issues and providing goods during a market failure caused by externalities.

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European versus American perspectives on balanced-budget rules

Article Abstract:

Legislative proposals for amending budget regulations in the US to ensure a balanced budget are compared with Maastricht Treaty provisions on fiscal deficits. Comparative examination shows that Europe's rules on fiscal deficit are more specific compared to the US. However, the rest of Europe's balanced budget rules allow authorities to develop their own interpretations. In addition, US' rules may lead to a long-term fiscal surplus.

Europe, Economic aspects, United States economic conditions, Budget deficits

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