Monetary and Fiscal Policy in the European Union : A look into the Policy Surrounding the Great Recession.
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This paper focuses on the findings of monetary and fiscal policy in the European Union surrounding the time of the Great Recession. It delves into the structural weaknesses the European Union's economy had, which allowed the Great Recession to make the union's economy tank. The paper also dissects how these policies were harmful to the entire Union. The separation of monetary and fiscal policy is also discussed in depth. How the European Union had a large disconnect between their two policy controllers for the economy, specifically identifying the Economic and Monetary Union, which controls the monetary policy in the European Union and individual countries own fiscal policies. Examined next is the way in which the European Union acted to save its economy. The new policies that were implemented and the overall problem taken up and decided that monetary and fiscal policy could not be so disconnected. The paper goes on to conclude that while monetary and fiscal policy will remain separate in the European Union, the Union itself will be able to survive economic hard ship and even create growth because of the new policies set forth from surviving the Great Recession to bring monetary and fiscal policy together.
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