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Fiscal Union, Monetary Policy Normalization and Populism in the Eurozone

Published online by Cambridge University Press:  27 January 2020

Alfredo Arahuetes García  and
Gonzalo Gómez Bengoechea
Alfredo Arahuetes García
Affiliation:
Universidad Pontificia Comillas. Alberto Aguilera 23, 20115Madrid, Spain; Emails: [email protected], [email protected]
Gonzalo Gómez Bengoechea
Affiliation:
Universidad Pontificia Comillas. Alberto Aguilera 23, 20115Madrid, Spain; Emails: [email protected], [email protected]
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Abstract

This article studies the different scenarios for the fiscal union in the Eurozone beyond 2019. It explains the different alternatives that the literature has explored to ensure fiscal transfers within Eurozone states as well as for common debt issuance. It also describes the role that monetary policy has played as a backstop for sovereign defaults and highlights the limits that inflation and an anti-euro backlash impose on public debt sustainability.

Type
Articles
Information
European Review , Volume 28 , Issue 2 , April 2020 , pp. 238 - 257
Copyright
© Academia Europaea 2020

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