"To be robust, such a system needs access to financing and a fiscal back-up mechanism for any net resolution costs," he said.
Not only does it suffer from lack of the kind of fiscal integration that has, for example,done so much to cushion Florida from the effects of a housing bust; it also suffers from a central bank that has a bias toward timidity because it doesn't have a fiscal authority backing it up.
Most discussion has concentrated on the fact that the euro was established without fiscal back-up or a lender of last resort.
Fiscal policies that stabilize debt may not provide the fiscal backing necessary for monetary policy to successfully target inflation.
Mr Sims says the ECB needs to be reassured its own balance-sheet has sound fiscal backing.
No Newt Gingrich, Huntsman's he's staunchly anti-abortion, and a fiscal conservative who backs Paul Ryan's budget plan to the hilt.
Right now, the state is wrestling with a fiscal megacrisis that goes back to 2006, when the Legislature cut local property taxes and made up for the lost revenue with a new business tax.
When Mr. Giuliani arrived in office in 1994, also a time when the city was in an economic bind, he quickly established a reputation as a fiscal conservative by cutting back many city services, from street cleaning to the maintenance of city parks.
Balls, battling to improve Labour's economic credibility in the polls, will defend his decision to back a fiscal stimulus in 2010, but will recommit himself to balancing the books in the next parliament, including by keeping child benefit rises below the rate of inflation and slashing ministers' pay by £6,708 a year.
He will also insist he did not make the wrong economic judgment in backing a fiscal stimulus in 2010-11.
They instigated a fiscal stimulus that dragged economies back from the cliff's edge.
