Commentary. An Alternative Stability Pact for the European Union

Posted: 18 Apr 2001

See all articles by Philip Arestis

Philip Arestis

University of Cambridge - Department of Land Economy; Universidad del País Vasco (UPV/EHU)

Kevin McCauley

Copenhagen Business School - Center for Economic and Business Research (CEBR); University of Leeds

Malcolm C. Sawyer

Levy Economics Institute

Abstract

This paper proposes an alternative stability and growth pact to the one which accompanied the introduction of the euro in January 1999. The latter is part of the third stage of economic and monetary union and, will govern the economic policies of the member countries which have joined the single currency and strongly constrain the policies of those who do not join. The alternative proposed in this paper is a Full Employment, Growth and Stability Pact and would have a number of features, the most important of which is the creation of new institutional arrangements, including the creation of an investment bank.

Keywords: stability pact, European central bank, investment bank, monetary policy, fiscal policy

JEL Classification: E12, E62, F15

Suggested Citation

Arestis, Philip and McCauley, Kevin and Sawyer, Malcolm C., Commentary. An Alternative Stability Pact for the European Union. Cambridge Journal of Economics, Vol. 25, No. 1, January 2001. Available at SSRN: https://ssrn.com/abstract=253304

Philip Arestis (Contact Author)

University of Cambridge - Department of Land Economy ( email )

19 Silver Street
Cambridge, CB3 9EP
United Kingdom

Universidad del País Vasco (UPV/EHU)

Barrio Sarriena s/n
Leioa, Bizkaia 48940
Spain

Kevin McCauley

Copenhagen Business School - Center for Economic and Business Research (CEBR) ( email )

Porcelaenshaven, Bldg 65
DK-2000 Frederiksberg
Denmark

University of Leeds

Leeds, LS2 9JT
United Kingdom

Malcolm C. Sawyer

Levy Economics Institute ( email )

Blithewood
Annandale-on-Hudson, NY 12504-5000
United States
845-758-7700 (Phone)
845-758-1149 (Fax)

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