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Departamento de Economía
Documentos de Trabajo
On the Insurance Function of Fiscal Policy in a Monetary Union
In this paper we first review the available literature on the degree of insurance
against shocks, provided by the central budget in the federal systems already existing.
Next, we discuss the main points raised on the debate about the implementation of an
automatic mechanism designed to cope with country-specific shocks in a monetary
union, and present a specific proposal of such a mechanism.
Versión
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DEPARTAMENTO DE ECONOMÍA
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