Resumen de On the insurance function of fiscal policy in a monetary union

Oscar Bajo Rubio, María del Carmen Díaz Roldán

• In this paper we first review the available literature on the degree of insurance against shocks, provided by the central budget in the federal systems already existing. Next, we discuss the main points raised on the debate about the implementation of an automatic mechanism designed to cope with country-specific shocks in a monetary union, and present a specific proposal of such a mechanism.