Coordination of Monetary and Fiscal Policy in the European Monetary Union

Damir Šehović

doi:10.7595/management.fon.2014.0032

Damir Šehović University of Montenegro, Faculty of Economics in Podgorica.

DOI: https://doi.org/10.7595/management.fon.2014.0032

Abstract

Given the presence of numerous fiscal policy holders and only one central bank within the European Monetary Union, the coordination of macroeconomic policies has two dimensions – the coordination among fiscal policy holders and the coordination among monetary and fiscal policy holders. Under the influence of the Global Economic Crisis, the need arose to enhance the coordination mechanism and to have a new instrument for the monitoring and coordination of fiscal and economic policies in the European Union. Using an analytical and deductive methodology, this paper aims to present a brief overview of the existing theoretical research of the said issue, showing at the same time the changes in the EMU coordination mechanism created in consequence of the crisis and emphasizing the challenges that this new mechanism already faces.

Author Biography

Damir Šehović, University of Montenegro, Faculty of Economics in Podgorica.

Damir Šehović is PhD candidate at University of Montenegro,Faculty of Economics in Podgorica. He completed his postgraduate studies at the Faculty of Economics, University of Belgrade, Serbia, in 2007, at the Department of Fiscal and Monetary Management, and Managing Social Activities. He graduated in 2004 at the Faculty of Economics in Podgorica as the best student in his generation, with the average score of 9,73. He is teaching assistant at the Faculty of Economics in Podgorica, at the following courses: Monetary Economy, Fiscal Economy, Banking Management, and Comparative Tax Law.