The precarious fiscal foundations of EMU

C. A. Sims

Research output: Contribution to journalArticlepeer-review

30 Scopus citations


After a brief overview of the fiscal theory of the price level, we consider the insights it provides into monetary policy formation under certain kinds of deflationary and inflationary stress. Then we consider how the institutions of the EMU are equipped - or unequipped - to deal with such stress. The conclusion is that fiscal institutions as yet unspecified will have to arise or be invented in order for EMU to be a long-term success.

Original languageEnglish (US)
Pages (from-to)415-436
Number of pages22
Issue number4
StatePublished - 1999

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics


  • European monetary union
  • Fiscal policy
  • Inflation
  • Liquidity trap
  • Monetary policy


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