TY  - JOUR
U1  - Zeitschriftenartikel, wissenschaftlich - begutachtet (reviewed)
A1  - Herzog, Bodo
T1  - Optimal sequencing to reform the European Economic and Monetary Union: a roadmap
JF  - Quantiative finance and economics
N2  - In this paper, we examine the political gridlock in reforming the Economic and Monetary Union. We utilize a two–stage game with imperfect information in order to study the optimal sequencing. The main results are: first, optimal sequencing requires for incompliant Member States a default option in stage–two, which in principle is related to the today's fiscal architecture (EMU-I). Second, we show that compliant countries prefer a reform equilibrium today if and only if they have a free choice about the preferred fiscal architecture at the end — either EMU-II with binding European coordination or EMU-I related to Maastricht. Noteworthy, our sequencing approach works for any design of the EMU-II architecture.
KW  - sequencing
KW  - EMU
KW  - fiscal governance
KW  - Maastricht
KW  - reforming
Y1  - 2021
UN  - https://nbn-resolving.org/urn:nbn:de:bsz:rt2-opus4-32302
SN  - 2573-0134
SS  - 2573-0134
U6  - https://doi.org/10.3934/QFE.2021014
DO  - https://doi.org/10.3934/QFE.2021014
VL  - 5
IS  - 2
SP  - 311
EP  - 324
S1  - 14
PB  - AIMS Press
CY  - Springfield
ER  -