Helping with the Homework: Support Mechanisms for Uncertain Reforms in a Monetary Union
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Carsten Hefeker
Abstract
A lack of structural reforms is often considered as a major problem in many member countries of EMU. This lack is arguably partly due to uncertainty about outcomes and a disregard for how policies spill over to other countries. Monetary union can reinforce this underprovision of structural reforms. Because centralization of structural policies is politically not feasible, I discuss subsidies for reforms and insurance against negative outcomes as alternative mechanisms that increase reform efforts. The paper derives the optimal use of those mechanisms and discusses their implementability.
Acknowledgement
I am grateful to the referee for constructive comments and suggestions.
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Article note
This article is part of the special issue “20 Years of European Monetary Union” published in the Journal of Economics and Statistics. Access to further articles of this special issue can be obtained at www.degruyter.com/journals/jbnst.
© 2019 Oldenbourg Wissenschaftsverlag GmbH, Published by De Gruyter Oldenbourg, Berlin/Boston
Artikel in diesem Heft
- Frontmatter
- Editorial
- 20 years of European Monetary Union
- Original Articles
- Putting European Monetary Integration into a Historical Perspective: Two Decades of the European Monetary System versus Two Decades of the European Monetary Union
- Twenty Years of European Central Bank Monetary Policy: A Keynesian and Austrian Perspective
- Did Interest Rates at the Zero Lower Bound Affect Lending of Commercial Banks? Evidence for the Euro Area
- Taking Stock of the EU Fiscal Rules over the Past 20 Years and Options for Reform
- Real and Financial Cycles in Euro Area Economies: Results from Wavelet Analysis
- Revisiting the Euro’s Trade Cost and Welfare Effects
- Economic Policy Uncertainty in the Euro Area: Cross-Country Spillovers and Macroeconomic Impact
- Helping with the Homework: Support Mechanisms for Uncertain Reforms in a Monetary Union
- Annual Reviewer Acknowledgement
- Annual Reviewer Acknowledgement
Artikel in diesem Heft
- Frontmatter
- Editorial
- 20 years of European Monetary Union
- Original Articles
- Putting European Monetary Integration into a Historical Perspective: Two Decades of the European Monetary System versus Two Decades of the European Monetary Union
- Twenty Years of European Central Bank Monetary Policy: A Keynesian and Austrian Perspective
- Did Interest Rates at the Zero Lower Bound Affect Lending of Commercial Banks? Evidence for the Euro Area
- Taking Stock of the EU Fiscal Rules over the Past 20 Years and Options for Reform
- Real and Financial Cycles in Euro Area Economies: Results from Wavelet Analysis
- Revisiting the Euro’s Trade Cost and Welfare Effects
- Economic Policy Uncertainty in the Euro Area: Cross-Country Spillovers and Macroeconomic Impact
- Helping with the Homework: Support Mechanisms for Uncertain Reforms in a Monetary Union
- Annual Reviewer Acknowledgement
- Annual Reviewer Acknowledgement
