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Monetary-fiscal interaction : Achieving the right monetary-fiscal policy mix in the euro area: In-Depth Analysis ; Requested by the ECON Committee

Diskussionspapiere extern

Kerstin Bernoth, Sara Dietz, Rosa Lastra, Marie Rullière

Bruxelles: European Parliament, 2023, 23 S.
(Monetary Dialogue Papers ; September 2023)


Achieving a balanced monetary-fiscal policy mix in the euro area is crucial to ensure that monetary policy is able to fulfil its primary price stability objective. This paper outlines, from an economic and legal perspective, the interaction between monetary and fiscal policy in light of the current monetary and fiscal stance and, in particular, the “quasi-fiscal” effects of some unconventional monetary policy measures. Since sustainable public finances are a prerequisite for a price-stability-oriented single monetary policy, the paper also analyses the EU economic governance review proposals.

Marie Rullière

Research Associate in the Macroeconomics Department

Kerstin Bernoth

Vice Dean of Graduate Studies in the Graduate Center