Series: IMF Working Papers
Author(s): Davide Furceri , and Aleksandra Zdzienicka
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 25 September 2013
Keywords: risk sharing, consumption smoothing, fiscal union, moral hazard, banking crises, moral hazard problems, private consumption, Financial Aspects of Economic Integration, Open Economy Macroeconomics,
The aim of this paper is to assess the effectiveness of risk sharing mechanisms in the euro area and whether a supranational fiscal risk sharing mechanism could insure countries against very severe downturns. Using...