Economic Policy Coordination in the Euro Area

The book provides a new perspective on the evolution of economic policy coordination in the European Union (EU), using the notion of externalities across countries and interdependences across policies to explain the new governance in EU economic policy. Written in response to the current Eurozone crisis, the book provides the first comprehensive analysis of measures taken during the euro crisis to improve the functioning of the European Monetary Union. It develops a unique analytical framework to explain the shift in the coordination of economic policies throughout the EU during the crisis, which led to stronger coordination between fiscal, monetary and wage policies.