Why has the Stability and Growth Pact Failed?
AbstractThis 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. Copyright Blackwell Publishing Ltd. 2004
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Wiley Blackwell in its journal International Finance.
Volume (Year): 7 (2004)
Issue (Month): 2 (07)
Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=1367-0271
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Beetsma, Roel & Giuliodori, Massimo, 2007.
"On the Relationship between Fiscal Plans in the European Union: An Empirical Analysis Based on Real-Time Data,"
CEPR Discussion Papers
6088, C.E.P.R. Discussion Papers.
- Giuliodori, Massimo & Beetsma, Roel, 2008. "On the relationship between fiscal plans in the European Union: An empirical analysis based on real-time data," Journal of Comparative Economics, Elsevier, vol. 36(2), pages 221-242, June.
- Christian Fahrholz & Cezary Wójcik, 2012.
"The Bail-Out! Positive Political Economics Of Greek-Type Crises In The Emu,"
Journal of International Commerce, Economics and Policy (JICEP),
World Scientific Publishing Co. Pte. Ltd., vol. 3(02), pages 1250010-1-1.
- Christian Fahrholz & Cezary Wojcik, 2010. "The Bail-Out! Positive political economics of Greek-type crises in the EMU," CASE Network Studies and Analyses 413, CASE-Center for Social and Economic Research.
- Christian Fahrholz & Cezary Wójcik, 2010. "The Bail-Out! Positive Political Economics of Greek-type Crises in the EMU," CESifo Working Paper Series 3178, CESifo Group Munich.
- Paolo Biraschi, . "Searching for the optimal EMU fiscal rule:an ex-post analysis of the SGP reform proposals," Working Papers wp2008-7, Department of the Treasury, Ministry of the Economy and of Finance.
- Suari Andreu, Eduard & Mierau, Jochen O., 2014.
"Fiscal rules and government size in the European Union,"
14009-EEF, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
- Jochen O. Mierau & Eduard Suari Andreu, 2014. "Fiscal Rules and Government Size in the European Union," CESifo Working Paper Series 4693, CESifo Group Munich.
- Hans-Bernd Schäfer, 2012. "The Sovereign Debt Crisis in Europe, Save Banks Not States," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 9(2), pages 179-195, August.
- Jakob Haan & Jeroen Klomp, 2013. "Conditional political budget cycles: a review of recent evidence," Public Choice, Springer, vol. 157(3), pages 387-410, December.
- Jochen Mierau & Richard Jong-A-Pin & Jakob de Haan, 2007. "Do political variables affect fiscal policy adjustment decisions? New empirical evidence," Public Choice, Springer, vol. 133(3), pages 297-319, December.
- Mark Mink & Jakob de Haan, 2005.
"Has the Stability and Growth Pact Impeded Political Budget Cycles in the European Union?,"
CESifo Working Paper Series
1532, CESifo Group Munich.
- Mark Mink & Jakob de Haan, 2006. "Are there Political Budget Cycles in the Euro Area?," European Union Politics, , vol. 7(2), pages 191-211, June.
- Niels Gilbert & Jeroen Hessel & Silvie Verkaart, 2013. "Towards a Stable Monetary Union: What Role for Eurobonds?," DNB Working Papers 379, Netherlands Central Bank, Research Department.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.