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The US may show the EU the way forward on fiscal integration

Feyrer, James and Sacerdote, Bruce (2013) The US may show the EU the way forward on fiscal integration. LSE European Politics and Policy (EUROPP) Blog (26 Aug 2013). Website.

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The financial crisis has not affected all of the countries of the EU in the same way. Member states in the EU’s periphery are struggling with unemployment rates of over 25 per cent, while the core nations, such as Germany, have rates around 5 or 6 per cent. Using another currency union, the US, as a comparison, James Feyrer and Bruce Sacerdote argue that one of the EU’s major weaknesses is its lack of a mechanism for large fiscal transfers between states. In the US, Federal spending is progressive, and much more responsive to external shocks, meaning that there is a much larger degree of smoothing between states in terms of GDP and unemployment rates.

Item Type: Online resource (Website)
Official URL:
Additional Information: © 2013 The Author(s)
Divisions: LSE
Subjects: H Social Sciences > HB Economic Theory
J Political Science > JC Political theory
J Political Science > JK Political institutions (United States)
J Political Science > JN Political institutions (Europe)
Date Deposited: 04 Apr 2017 15:00
Last Modified: 16 May 2024 07:08

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