Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - The UK and the Eurozone
T2 - sovereign debt management and monetary policy
AU - Steele, Gerald
PY - 2013/10
Y1 - 2013/10
N2 - Events in the wake of the ‘credit crunch’ can be understood only against institutional structures within which interdependent monetary and fiscal policy are administered. In the eurozone, the attempt to keep a central monetary authority (together with its associated national central banks) independent from seventeen diverse fiscal authorities was flawed. When sovereign debt approaches unmanageable levels, the Maastricht Treaty presents austerity as the single option. In the UK, the electorate has an opportunity to choose between monetary financing (inflation) and fiscal consolidation (austerity). Policy choices within the eurozone and the UK are set against Keynes’s focus on unemployment and more recent concerns to retain (or restore) price and/or financial stability.
AB - Events in the wake of the ‘credit crunch’ can be understood only against institutional structures within which interdependent monetary and fiscal policy are administered. In the eurozone, the attempt to keep a central monetary authority (together with its associated national central banks) independent from seventeen diverse fiscal authorities was flawed. When sovereign debt approaches unmanageable levels, the Maastricht Treaty presents austerity as the single option. In the UK, the electorate has an opportunity to choose between monetary financing (inflation) and fiscal consolidation (austerity). Policy choices within the eurozone and the UK are set against Keynes’s focus on unemployment and more recent concerns to retain (or restore) price and/or financial stability.
KW - austerity
KW - debt management
KW - Eurozone
KW - monetary policy
KW - quantitative easing
U2 - 10.1111/ecaf.12035
DO - 10.1111/ecaf.12035
M3 - Journal article
VL - 33
SP - 327
EP - 333
JO - Economic Affairs
JF - Economic Affairs
SN - 0265-0665
IS - 3
ER -