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EMU's Fiscal Rules and Economic Stabilization

Author

Listed:
  • Christophe Schalck

    (EconomiX, University of Paris X)

Abstract

This paper proposes a quantitative comparison of EMU's different fiscal rules, i.e., the stability and growth Pact, the structural deficit rule and the golden rule. From comparing the economic stabilizing effects of each rule, it concludes that the Pact is not the perfect solution.

Suggested Citation

  • Christophe Schalck, 2006. "EMU's Fiscal Rules and Economic Stabilization," Economics Bulletin, AccessEcon, vol. 5(4), pages 1-8.
    • Handle: RePEc:ebl:ecbull:eb-05e60006
    as

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    File URL: http://www.accessecon.com/pubs/EB/2006/Volume5/EB-05E60006A.pdf
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    References listed on IDEAS

    as
    1. Jérôme Creel, 2003. "Ranking Fiscal Policy Rules: the Golden Rule of Public Finance vs. the Stability and Growth Pact," Sciences Po publications 2003-04, Sciences Po.
    2. repec:hal:spmain:info:hdl:2441/2975 is not listed on IDEAS
    3. Bouthevillain, Carine & Cour-Thimann, Philippine & van de Dool, Gerrit & Hernández de Cos, Pablo & Langenus, Geert & Mohr, Matthias & Momigliano, Sandro & Tujula, Mika, 2001. "Cyclically adjusted budget balances: an alternative approach," Working Paper Series 77, European Central Bank.
    4. Gert Peersman & Frank Smets, 2005. "The Industry Effects of Monetary Policy in the Euro Area," Economic Journal, Royal Economic Society, vol. 115(503), pages 319-342, April.
    5. Leith, Campbell & Wren-Lewis, Simon, 2000. "Interactions between Monetary and Fiscal Policy Rules," Economic Journal, Royal Economic Society, vol. 110(462), pages 93-108, March.
    6. Engwerda, Jacob C. & van Aarle, Bas & Plasmans, Joseph E. J., 2002. "Cooperative and non-cooperative fiscal stabilization policies in the EMU," Journal of Economic Dynamics and Control, Elsevier, vol. 26(3), pages 451-481, March.
    7. Marco Buti & Carlos Martinez-Mongay & Khalid Sekkat & Paul van den Noord, 2002. "Automatic Stabilisers and Market Flexibility in EMU: Is There A Trade-Off?," OECD Economics Department Working Papers 335, OECD Publishing.
    8. repec:hal:wpspec:info:hdl:2441/2975 is not listed on IDEAS
    9. Otmar Issing, 2002. "On Macroeconomic Policy Co‐ordination in EMU," Journal of Common Market Studies, Wiley Blackwell, vol. 40(2), pages 345-358, June.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Christophe Schalck, 2006. "The stability Pact and the coordination of fiscal policies in the EMU," Economics Bulletin, AccessEcon, vol. 5(9), pages 1-11.

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    More about this item

    JEL classification:

    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook

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