Monetary and fiscal policies in the EU. Is there a difference between EMU and non-EMU members

Bibliographic Data

ID21281901
AuthorsDanijela Pantovic (0000-0001-8605-8614, University of Kragujevac, corresponding author), Aleksandra Fedajev (0000-0002-6974-6631, University of Belgrade, corresponding author), Isidora Milošević (0000-0001-5539-8253, University of Belgrade, corresponding author)
Year2023
Volume73
Issue1
Pages85-100
Publication date2023-03-27
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueActa Oeconomica (JOURNAL)
Journal identifiersISSN: 0001-6373 • E-ISSN: 1588-2659
PublisherAkademiai Kiado Zrt. (PUBLISHER • HU)
DOI10.1556/032.2023.00006
OpenAlexW4360999003
LanguageEN
Citations received1
References cited5

The COVID-19 crisis has put the European Union's (EU) ability to respond to external challenges to test. It is not a new issue that has arisen due to the current crisis. The global economic crisis of 2008, and, in particular, the sovereign debt crisis of 2010, highlighted the need for institutional, policy and political reform to ensure the stability and long-term sustainability of the EU project. The EU's asymmetric degrees of integration, in terms of Economic and Monetary Union (EMU) and non-EMU members, resulted in a diverse response to the crisis and, more importantly, mixed-effects from monetary and fiscal policies. This study aims to research the impact of monetary and fiscal policies between 2007 and 2015 on economic growth and employment. The findings show that loose monetary policies at the EU, EMU and non-EMU levels boosted economic growth and development. On the other hand, restrictive fiscal policy had favourably influenced GDP and employment by reducing inflationary pressures produced by expansive monetary policy. However, fiscal policy had a greater impact in the non-EMU countries, demonstrating that this policy can act as a stabilizing force in the face of an overly expansive and common monetary policy. In order to respond effectively to the current and future crises, the EU government should overhaul the way monetary and fiscal policy is conducted and coordinated

Economic and monetary union · Economic policy · Economics · European debt crisis · European integration · European union · Expansive · Fiscal policy · Fiscal union · International economics · Member states · Monetary economics · Monetary policy · Stability and Growth Pact · Fiscal Policies and Political Economy

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