02153nam a2200289 a 4500 1/51432 090210s2008 be u pdd 1 a0eng d 978-92-79-08269-6 1016-8060 (print) 1725-3187 (online) KC-AI-08-344-EN-C 39218 GR-PeUP ΚΕΤ Αλφαβητική σειρά Allsopp, Christopher. Fiscal policy, intercountry adjustment and the real exchange rate within Europe/ Christopher Allsopp, and David Vines. Brussels- Belgium : Office for Infrastructures and Logistics in Brussels, 2008. 42 σ. ; πιν. : 30 εκ. European Economy. Economic papers ; In EMU, a country may have difficulty ensuring stability in the face of asymmetric shocks; the response may be unstable, or, even if not, the real exchange rate might overshoot. Fiscal policy may help to stabilise inflation and also to target the real exchange rate. The paper argues that an improved fiscal policy process might result in improved macroeconomic performance within Europe. Within EMU, a country may have difficulty ensuring stability in the face of asymmetric shocks; the response may be unstable, or, even if not, the real exchange rate might overshoot. In this context, the rules of the SGP may interfere with the control of inflation control, with the short-run stabilisation of demand, and also with the longer term adjustment of intra-European real exchange rates. We recommend using fiscal policy to stabilise inflation and also to target the real exchange rate rather than deficits or debt. Such a policy would require a more active use of fiscal policy. Economic Papers. Vines, David. European Commission : Directorate-General for Economic and Financial Affairs. Economic Papers October 2008, No 344. European Economy. Economic papers ; 344. INST UNIPILB KET 20090212 EEEP 344 EEEP 344 NOLOAN 23 1 http://ec.europa.eu/economy_finance/publications/publication_summary13256_en.htm.