RT Journal Article
T1 Single currency and fiscal performance: the early Euro Area in perspective
A1 Jalles, Joao Tovar
A1 Mulas Granados, Carlos
A1 Tavares, José
A1 Correa Caro, Carolina
AB We examine how exchange rate regimes affect fiscal discipline by investigating European countries as they transitioned from flexible to fully fixed exchange rates under the Euro. We apply the synthetic control method to estimate, for each Eurozone country, its counterfactual budget stance under flexible rates. Our evidence strongly suggests that fixing exchange rates negatively impacted negatively fiscal discipline. However, effects were not homogeneous, as they were mediated by political factors. For example, countries where policymakers faced a longer political horizon and operated within a more cohesive political environment, managed to perform better in terms of fiscal discipline.
PB Routledge
SN 1350-4851
YR 2018
FD 2018-03
LK https://hdl.handle.net/20.500.14352/13226
UL https://hdl.handle.net/20.500.14352/13226
LA eng
DS Docta Complutense
RD 5 abr 2025