02332nam a2200301 4500 1/51394 080128s2008 be u pdd 1 a0eng d 9789279082412 1016-8060 (print) 1725-3187 (online) KC-AI-08-316-EN-C 37335 GR-PeUP ΚΕΤ Αλφαβητική σειρά Debrum, Xavier. Government size and output volatility : should we forsake automatik stabilization / Xavier Debrun, Jean Pisani-Ferry, Andre Sapir. Brussels- Belgium: European Comission: Directorate-General for Economic and Financial Affairs, 2008. 74 σ. : διαγ. πιν. ; 30 εκ. European Economy. Economic papers ; Prior to the launch of the euro, academics and policymakers were concerned that the loss of the monetary policy instrument would deprive participating countries of a vital tool to respond to country-specific economic shocks. This concern was rooted in the generally accepted proposition that market-based adjustment channels-i.e. labour mobility and capital flows-tended to be weaker among euro area countries than among regions of existing monetary unions such as the United States. Automatic stabilizers had long been regarded as playing a key role in macroeconomic stabilization. In particular, they were generally considered as having contributed significantly to the decrease of output volatility witnessed in Europe and in the United States after World War II, when the size of governments increased substantially on both sides of the Atlantic. Hence it was hoped that improved national fiscal policy could partly make up for the loss of monetary policy in stabilizing national macroeconomic conditions. The aim of the paper is to discuss this issue in the light of recent experience. Economic Papers Pisani-Ferry, Jean. Sapir, Andre. European Commission : Directorate-General for Economic and Financial Affairs. Economic Papers April 2008, No 316. European Economy. Economic papers ; 316. INST UNIPILB KET 20090303 EEEP 316 EEEP 316 NOLOAN 23 1 http://ec.europa.eu/economy_finance/publications/publication_summary12385_en.htm