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What is the reasons for adopting supranational controls on fiscal policy in the Eurozone and how...

What is the reasons for adopting supranational controls on fiscal policy in the Eurozone and how effective have they been?

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A supranational control refers to a global union or group wherein the influence and power of member states transcend national boundaries or interests to share in making of decision and vote on problems in regard to the collective body. The Eurozone adopted supranational controls on fiscal policy because the mechanism of supranational fiscal risk sharing at the euro area level could provide greater global insurance through a stabilization fund. It would assist to boost confidence and enhance the effectiveness of market-based insurance mechanisms. However characterized by bureaucratic planning and regulation have not produce growth in economy and isn't effective. It resulted to moral hazard and decreased the incentives to conduct counter-cyclical fiscal policy

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