作者：周茂荣   周念利

Abstract : “Excessive deficit of even a single member state may cause inflation in the whole Economic and Monetary Union” has been regarded as the core hypothesis that supported the creation of the EMU fiscal discipline. Basing on the monetarism price determine theory,this paper attempts to demonstrates the necessity of the fiscal restraint under the framework of stability and growth pact in European Union from the perspective of maintaining the stability of equilibrium price and exchange rate in Euro area.