A working paper published by the European Central Bank proposes a stabilisation policy to ameliorate the effects of country-specific economic shocks.

In A minimal moral hazard central stabilisation capacity for the Emu based on world trade, Roel Beetsma, Simone Cima and Jacopo Cimadomo note that there have been two main objections to similar schemes. Critics worry that stabilisation schemes can create moral hazard, by reducing incentives for structural reform and good fiscal policies, and might