Fiscal policy key to stabilizing economy in monetary union, study finds.
The article explores how fiscal policy can help stabilize the economy in a group of countries sharing the same currency. By using a detailed economic model, the researchers found that national governments can adjust their spending and taxes to respond to changes in inflation and economic output. They discovered that it's not crucial for each country to coordinate their fiscal policies across the union, as long as they focus on their own inflation and output levels.