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The euro has no single fiscal authority standing behind it.
Fiscal authority and administrative responsibility must be consolidated.
Skeptics predicted either doom or an unacceptable surrender of sovereignty to a central fiscal authority.
The original Articles of Confederation proved inadequate, largely because there was no centralized fiscal authority.
Under current eurozone rules, no fiscal authority stands directly behind the ECB.
The eurozone would establish a fiscal authority that would be in charge of issuing eurobonds.
The sovereign debt crisis showed the inherent problems of running a currency union without central fiscal authority.
The fiscal compact, backed up by a well functioning fiscal authority would practically eliminate the risk of default.
WHEN Congress sought to claw back fiscal authority from Richard Nixon in the early 1970s, it came up with its own budget process.
When Blanchard says the fiscal authority should sell Treasury bills and recycle the proceeds into risky assets, this is precisely what the Fed's liquidity facilities have done.
And Mariano Rajoy of Spain floated the idea of a common fiscal authority in Europe to synchronize budgets and manage debts.
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