|
|
|
|
||||
|
||||
Why has the Stability and Growth Pact Failed?Jakob De HaanUniversity of Groningen - Faculty of Economics and Business; De Nederlandsche Bank; CESifo (Center for Economic Studies and Ifo Institute for Economic Research) Helge BergerFree University Berlin - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute for Economic Research) David-Jan JansenDe Nederlandsche Bank International Finance, Vol. 7, No. 2, pp. 235-260, 2004 Abstract: This paper evaluates the Stability and Growth Pact. After briefly examining the rules in place and the experience so far, the Pact is analysed from a political economy perspective, focusing on the choice of hard versus soft law and drawing inferences from characteristics of successful fiscal rules at the state level in the USA. The main argument of the paper is that the Pact's enforcement mechanisms are too weak. It is also argued that big countries are less likely to adhere to the fiscal policy rules in place. Reform of the Pact should aim at stricter, instead of more flexible, rules and should not rely on cyclically adjusted deficit estimates.
Keywords: Stability and Growth Pact, EMU, budget discipline JEL Classification: E61, E63 Accepted Paper SeriesDate posted: February 10, 2005Suggested CitationContact Information
|
|
||||||||||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo2 in 0.312 seconds
