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A. Boitani & R. Tamborini: Fiscal Policy Coordination. A Necessary Step for the Eurozone Recovery

image-03/03/2015 - 16:58The prolonged recession in the Eurozone is mainly due to austerity policies, which are based on faultytheoretical foundations no less than on faulty narratives and empirical analyses of the crisis. The twinmantras of structural reforms and internal devaluation are also based on twisted arguments. The socialcosts of the crisis and the permanent risks of Euro-dissolution suggest that it is urgent having a new“Ecofin 2.0”, with a clear mandate for fiscal policy coordination vis-à-vis the monetary policy stance ofthe ECB, even in the absence of a full-blown European federal system. We attempt at listing the mainfeatures of the suggested institutional reform.

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